Strike executes new GSA with Orica 22 Sep 2017

Strike Energy has advised of the execution of a new gas sales agreement with Orica International for the supply of up to 64 PJ of gas from its South Australian Southern Cooper Basin gas project in PEL 96.

Strike had previously advised in August that it had entered into a binding term sheet with Orica for the negotiation of a new agreement to replace the existing agreement entered into in 2014.

“The renegotiation and signing of this new agreement with our foundation customer is a clear indication that Strike is delivering against its revised strategy released on 1st June 2017, and progressing toward commercial development of the Southern Cooper Basin gas project,” Strike Managing Director Stuart Nicholls commented.

“The renegotiation of the offtake agreement is evidence that the external environment is changing dramatically around Strike and that forward gas demand continues to grow with supply tightening. The development of the Southern Cooper Basin gas project will provide a critical supply of gas into the east coast market at a time of significant need.”