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ORORA LIMITED — Capital/Financing Update 2018
Jan 28, 2018
65505_rns_2018-01-28_094f705c-9f1d-4cd8-bf6d-bda60b53aff3.pdf
Capital/Financing Update
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ASX Announcement
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29 January 2018
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The Company Announcement Officer ASX Ltd via electronic lodgement
REVISED GAS SALES AGREEMENT WITH ORORA
- Strike announces revised 45PJ Gas Sales Agreement with Orora in line with revised development strategy for Strike’s Southern Cooper Basin Gas Project
Strike Energy Limited ( Strike - ASX:STX) is pleased to announce that it has revised the Gas Sales Agreement ( GSA ) entered into with Orora Limited ( Orora ) in 2014 to better align the GSA with Strike’s revised development strategy for its Southern Cooper Basin Gas Project ( SCBGP ) in PEL 96 (Strike 66.67% and Operator, Energy World Corporation 33.33%).
Pursuant to the revised GSA, Orora will have the option to purchase 45PJ of gas to be produced from the PEL 96 permit area, at 4.5PJ per annum over a 10 year term, commencing on or after 1 January 2020.
Orora’s option remains conditional on the PEL96 Joint Venture making a final investment decision on a commercial project within PEL 96, but with the threshold project size being the planned Phase 1 50TJ/day project.
The revised option has been agreed on terms that support the commercial development of the SCBGP.
Managing Director, Stuart Nicholls commented:
“The renegotiation of this agreement with Orora, who has been a big supporter and a foundation customer, is a clear indication that Strike is seeking to progress the commercial development of the Southern Cooper Basin Gas Project.
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.”
Investor and Media Contacts
Stuart Nicholls
Managing Director Phone: +61 432 587 808 email: [email protected]
Justin Ferravant
Chief Financial Officer & Company Secretary Phone: +61 8 7099 7483 email: [email protected]
Strike Energy Limited ABN 59 078 012 745 www.strikeenergy.com.au
P: +61 8 7099 7464 E: [email protected]