Today turns out to be another great day for an entirely different reason - my hopeless forlorn STX holding that wallowed at yearly lows all-time lows of 7c and brought me untold grief has just caught fire and threatening to explode.
This mornings Ann:
ORICA AND STRIKE ENERGY SIGN BINDING TERM SHEET FOR UP TO 150PJ OF GAS STRIKE ENERGY TO UNDERTAKE A RAPID EVALUATION PROGRAM TO COMMERCIALISE ITS PROSPECTIVE GAS RESOURCE IN COOPER BASIN PERMIT PEL 96 Highlights: • 20 year supply for up to 150PJ • Orica a foundation customer of the project • Subject to milestones being achieved Orica to make pre-payments towards future gas deliveries to fund pilot test work and development expenditure.
Orica Australia Pty Ltd (ABN 99 004 117 828) (“Orica”), a subsidiary of Orica Limited (ASX:ORI) and Strike Energy Limited (ABN 59 078 012 745) (“Strike” - ASX:STX) have entered into a binding term sheet for the supply of up to 150 PJ of gas to be produced by Strike from PEL 96 (Strike 66.67% and operator; Energy World Corporation Ltd (ASX:EWC) 33.33%).
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.
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.
I love this bit: Orica Managing Director and CEO Ian Smith said: “This agreement has the potential to provide a future new source of gas supply to our Australian east coast manufacturing plants at an affordable price.”
If you've got anything left in your hidey-hole, now could be the time to have a closer squiz at this one and maybe slap a bit on. DYOR
NEN Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
