Orora Limited (ASX:ORA) has struck a deal for the supply of gas from Strike Energy's (ASX:STX) Cooper Basin gas project in South Australia.
Orora recently demerged from Amcor Limited (ASX:AMC) as its Australasian packaging division.
An amount of 30PJ of gas is to be delivered at 3PJ per annum, at a fixed price over a 10 year term from 2017, which is the expected commencement of production from the project.
Orora has agreed to pay an option fee to Strike, conditional upon the PEL 96 joint venture, operating within Strike's Cooper Basin acreage, proceeding with a pilot production test project.
Orora can then exercise the option when a decision is made by the PEL 96 joint venture to proceed with development of the project.
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