Ann: Strike & Orica Sign Binding Gas Supply Term , page-9

re: Ann: Strike & Orica Sign Binding Gas Supp... As part of Orica’s project due diligence, leading petroleum industry consultants, DeGolyer and MacNaughton, were engaged to advise on both technical and commercial considerations. Development of the PEL 96 prospective gas resource provides an opportunity for Strike to become a new independent Cooper Basin gas supplier.


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.”


Strike’s Managing Director, David Wrench noted, “This is a break-out transaction for Strike, providing the opportunity to unlock substantial value in our Southern Cooper Basin Gas Project. Today’s announcement is a win-win for both parties, providing potential gas supply at an acceptable price for Orica while delivering to Strike a material contribution towards the appraisal and development of the project.”

Strike, as project operator, will commence field activities in the current quarter.