Strike Energy (ASX:STX) has announced the execution of a new gas sales agreement with multinational Orica.
The energy company has agreed to supply gas from Strike’s Southern Cooper Basin Gas Project.
The binding agreement replaces an existing sales agreement from 2014.
As part of the negotiations, the date of repayment for its $2.5 million loan to Orica has been extended to 2021 from 2018.
Managing Director Stuart Nicholls said the renegotiation and signing of the new agreement is an indication that Strike is delivering and progressing towards commercial development.
Shares in Strike Energy (ASX:STX) are trading up 1.12 per cent to 9 cents a share.