Strike Energy Signs New Gas Supply Deal

Strike Energy has inked a deal to supply 12.5PJ of gas to Austral Bricks, a subsidiary of Brickworks Limited.

The gas is to be produced by Strike from its Southern Cooper Basin Gas Project to be developed on the substantial gas resource identified within the PEL 96 permit area.

According to the company this deal complements the gas supply option agreement signed by the company with Orora Limited for 30PJ of gas.  

The 12.5PJ of gas will be delivered at 1.25PJ per annum, at a fixed price over a 10 year term from 2017.

“The payment of an option fee to Strike by Austral Bricks as a gas pre‐payment, conditional only upon the PEL 96 joint venture proceeding with a pilot production test project. Austral Bricks can then exercise the option when a decision is made by the PEL 96 joint venture to proceed with development of the Project,” the company said.

Strike will use the option fee to accelerate the PEL 96 work program following the recent confirmation of a substantial, continuous gas resource directly under the Moomba to Adelaide gas pipeline. 

The option agreements with Orora and now Austral Bricks for a total of 42.5PJ of gas follow the announcement in July 2013 of a binding term sheet with Orica for the supply of up to 150PJ of gas over a 20 year period.

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