STRIKE Energy will increase the amount of gas it sells to packaging manufacturer and distributor Orora by 15 petajoules (PJ) under a revised agreement with the group.

Orora signed on in January to buy 30 PJ of gas from Strike’s Southern Cooper basin gas project at a rate of three per year over ten years.

The new agreement, signed in June, takes the total of gas to be sold under the agreement to 45 PJ, contracted on the same terms from 2017, the expected commencement of production from the South Australian project.

Strike managing director David Wrench said the deal would help Strike deliver cost effective gas transportation solutions for existing and future customers.

“With the signing of the Orora GSA (gas sales agreement) and the imminent conversion of the Austral Bricks option agreement into a fully termed GSA, we have sufficient gas off‐take in place to underpin an initial project development on PEL 96,” he said.

“Our focus is now to progressively convert our multi‐Tcf gas resource to reserve status as rapidly as possible through our current fracture stimulation, completion and flow testing program.”

The GSA complements the foundation contract for up to 250PJ of gas with Orica, announced on 25 March 2014 and the Gas Supply Option Agreement with Austral Bricks for 12.5PJ of gas, announced on 27 February 2014.

The news came as Strike completed fracture stimulation operations at the Le Chiffre well on PEL 96, a part of the project.

“We have successfully achieved a number of objectives at this early stage of the testing program with the execution of the frac program,” Mr Wrench said.

“We have been positively surprised by the relatively high permeability of the coals and are currently planning the next stage of testing to obtain a full understanding of the potential of these high productivity coals.”