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Perth, Sep 16, 2014 AEST (ABN Newswire) - Energy shortages in the eastern states gas market are creating a significant opportunity for Australian oil and gas companies possessing well located assets, according to Strike Energy (ASX:STX) (OTCMKTS:STKKF) managing director David Wrench.

In an interview at the Good Oil conference held in Fremantle, Western Australia from September 9-10 Wrench said: "there looks to be a very large gas shortage emerging over the next few years."

Strike Energy's flagship southern Cooper Basin asset holds a very large gas resource and is located within close proximity of existing gas pipeline infrastructure connected to the eastern states gas market.

The company has already commenced tendering supply agreements to this restricted market.

Wrench said that Strike Energy will be predominantly supplying gas for industrial and commercial uses and that the company has already received agreements with three customers: Orica, Aurora and Brickworks.

These companies will require a "substantial volume of gas" according to Wrench, and the company is planning on further expansion.

"The project has a scale to supply gas into the Gladstone LNG facilities, which is ultimately where we would like to see this project heading," said Wrench.

Strike Energy owns assets in Australia as well as over 10,000 acres in the Eagleford Shale province in the United States.

The company holds a strong cash position, having just sold close to 1,600 acres of the Eagleford Shale assets at approximately $3,000 an acre.

Strike is also looking for partners to join it in developing the Eagleford Shale assets. Wrench said "we're actively working to farm-out the balance of that acreage package so we can continue to see wells drilled.

"We're very keen on it because we can keep a position there with no funding requirement on an ongoing basis. So we think there's some real upside," he said.

To view the conference video interview, please visit:
http://www.abnnewswire.net/press/en/78138/Strike


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