Incitec Pivot Limited (ASX:IPL) say they have signed a letter of intent with Real Energy Corporation Limited (ASX:RLE). 
 

The deal is a first step in negotiations for the sale of gas from Real Energy’s Cooper Basin gas project and the two companies intend to work closely together towards a binding Gas Sale Agreement. 
 

It is hoped to eventuate a 10 year agreement for around 110 petajoules of gas. 
 

Incitec Pivot recently reported a net profit of $146.5 million for the six months to the end of March.