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Strike Energy (ASX:STX) - Managing Director & CEO, Stuart Nicholls
Managing Director & CEO, Stuart Nicholls
Source: Strike Energy
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  • Strike Energy (STX) is finalising the second round of deals relating to its urea offtake process with multiple firm offers received
  • The company says the total orders account for 4.75 million tonnes per annum of Project Haber’s proposed urea production
  • STX plans to produce 1.4 mtpa of urea from the Geraldton based project, with many of the new deals to run for up to 15 years
  • The energy stock says the long-term nature of the deals will help its future bankability, with STX set to sell down the equity in the project shortly
  • Shares in Strike Energy are trading at 30 cents each at 10:44 am AEST

Strike Energy (STX) is finalising the second round of deals for its urea offtake process with multiple firm offers received.

STX has been planning to establish a urea fertiliser production project, using its own natural gas, in Geraldton, in WA’s Mid West.

Project Haber would produce 1.4 million tonnes per annum of urea, with the new orders amounting for 4.75 mtpa.

Strike explained several of the new deals could run for up to 15 years, which would help support the future bankability of the development.

The energy stock will now short-list parties and negotiate binding agreements, with deals likely to be signed in the coming months.

Once the offtake deals have been officially signed, STX will then move to market and sell down the equity in the project.

Strike’s Board of Directors will meet and review the pre-FEED outcomes ahead of decisions being made on the ownership and operating structure of Project Haber.

Shares in Strike Energy were trading for 30 cents at 10:44 am AEST.

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