Strike Energy and Orora Ink GSA

Strike Energy said that it has entered into a Gas Sales Agreement (GSA) for 45PJ of gas with Orora Limited.

The GSA adds a further 15PJ of gas to the 30PJ agreed with Orora earlier this year in the Gas Supply Option Agreement (Option Agreement) announced by Strike on 15 January 2014 and supersedes and replaces that Option Agreement.

The additional gas has been contracted on the same terms as the Option Agreement at a fixed rate of supply over a 10 year term from 2017, the expected commencement of production from the Southern Cooper Basin Gas Project in PEL 96.

The GSA complements the foundation contract for up to 250PJ of gas with Orica, announced on 25 March 2014 and the Gas Supply Option Agreement with Austral Bricks for 12.5PJ of gas, announced on 27 February 2014.

With aggregate contracted off-take of 307.5PJ (net to Strike) and a balanced portfolio of fixed price, market linked and production cost based tariffs, the Southern Cooper Basin Gas Project is positioned for rapid commercialisation.

Managing Director David Wrench said: “The additional gas committed to Orora for their east coast manufacturing facilities will assist Strike to deliver cost effective gas transportation solutions for our existing and prospective Eastern Australian gas customers. With the signing of the Orora GSA and the imminent conversion of the Austral Bricks option agreement into a fully termed GSA, we have sufficient gas off-take in place to underpin an initial project development on PEL 96. Our focus is now to progressively convert our multi-Tcf gas resource to reserve status as rapidly as possible through our current fracture stimulation, completion and flow testing program.”

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Press Release, June 23, 2014