Orica, Strike Ink Gas Supply Deal

Orica Australia, a subsidiary of Orica Limited and Strike Energy have inked a deal where Strike will supply up to 150 PJ of gas produced from Strike’s PEL 96 located in Cooper Basin, Australia.

The agreement is an innovative risk-sharing arrangement designed to facilitate the evaluation and commercialisation of a large prospective gas resource (2.7 – 6.3Tcf gas net to Strike) defined within PEL 96 which forms part of Strike’s larger Southern Cooper Basin Gas Project (PELs 94,95 & 96) in South Australia, Strike Energy said.

To secure its gas offtake Orica can elect to make up to $52.5 million of gas pre-payments as Strike achieves appraisal and development milestones.

The company feels that development of the PEL 96 prospective gas resource provides an opportunity for the company to become a new independent Cooper Basin gas supplier.