STRIKE Energy has settled its dispute with Energy World Corporation subsidiary Australian Gasfields, paving the way for the companies to rapidly advance development of the Southern Cooper basin gas project.
As operator and holder of a 66.67% interest in the PEL 96 joint venture (JV) which contains the project in the Cooper-Eromanga basin, Strike announced the signing of a deed of cross security by the parties in late April – a required move as the JV progresses to the development phase.
Strike told shareholders earlier that month it had funded close to $1.5 million of outstanding cash calls following inaction by Australian Gasfields in funding its portion of the joint operating agreement.
Strike had threatened to take over Australian Gasfields’ rights, title and interest in the project as a consequence of the group’s failure to rectify the situation.
At the time, Energy World Corporation responded to the threat with plans to dispute the notice.
However, whatever dispute was there is gone with the parties settling the matter after Strike confirmed Australian Gasfields had paid the cash calls in full.
Both companies have now contributed their respective share of the moneys to the forthcoming fracture stimulation and f low testing program in full.
“The signing of the deed of cross security and funding of the next stage of the evaluation program signals the joint commitment of Strike and AGL to rapidly progress the commercialisation of the Southern Cooper Basin Gas Project,” Strike managing director David Wrench said.
EWC managing director Stewart Elliott said AGL remained fully committed to developing the large prospective gas reserve within PEL 96.
“The signing of the deed of cross security and funding of the next stage of the evaluation program is an important milestone for the project’s development and signals the ongoing mutual commitment of AGL and Strike,” he said.