Life After 1st of Orica Prepayments

Just thought I'd start a new thread cos the other one was getting a wee bit long...

http://www.heraldsun.com.au/news/vi...ry-for-long-term/story-fnpp4dl6-1227371921437

THE eastern-seaboard gas market is changing forever with the progressive opening of three major LNG plants in Gladstone and it has created some unlikely bedfellows.

Industrial gas users that have long been used to being able to write long-term gas contracts at reasonable prices are facing an inability to buy forward gas at all for the period after the big new plants all start sucking down huge amounts of gas in 2018-19.

Their choice has been to help some of the gas juniors to develop alternative supplies, not exactly their core business but the only option when faced with the need to plan future production, pricing and employment.

Strike Energy is one of the beneficiaries, on Wednesday receiving the first $7.5 million pre-payment under Orica’s earlier 250 petajoule gas sales agreement. Strike chief executive David Wrench said it would now continue accelerated flow testing of its wells in the southern Cooper Basin, with the aim of hitting significant production levels following some fracture stimulation.

“We are quite happy to supply longer term offtake commitments underpinned by a solid contract because we don’t have any offshore contracts,’’ said Mr Wrench.
With existing pipelines much thicker on the ground than anti-gas protesters in the Copper Basin, Strike moves to a speculative buy.

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