Strike Energy (ASX:STX) has signed a gas sales agreement to supply Orora Limited (ASX:ORA) with 45 petajoules of gas over 10 years from 2017.
The shares should continue to firm based on this agreement.
This expands on and replaces the previous gas supply option agreement for 30PJof gas.
Gas for this contract will come from the Southern Cooper Basin Gas Project in PEL 96, South Australia.
The sales agreement complements the foundation contract for up to 250PJ of gas with Orica and the Gas Supply Option Agreement with Austral Bricks for 12.5PJ of gas.
This also gives Strike enough gas offtake to underpin an initial development of the project.
It will now focus on converting its multi-trillion cubic feet resource to reserve status through its current fracture stimulation, completion and flow testing program.
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