- Junior oil and gas explorer Leigh Creek Energy (LCK) has landed two exploration licence applications near historical discoveries in South Australia
- The licence applications were awarded by the Department of Energy and Mining in South Australia
- Now, Leigh Creek needs Native Title agreements to be signed before the official licences can be granted by the Minister of Energy and Mining
- Once these are granted, the company will kick off some 2D and 3D seismic surveying and exploration wells in the area
- Managing Director Phil Staveley said the company was delighted to have been awarded these “highly prospective” permits
- Shareholders seem impressed with today’s news, with Leigh Creek shares gaining over 16 per cent in mid-afternoon trade, currently sitting at 7.8 cents each
Junior energy company Leigh Creek Energy (LCK) has landed two exploration licence applications near historical discoveries in South Australia.
The company told shareholders this morning it has been awarded the Petroleum Exploration Licence Applications, dubbed PEL 675 and PEL 676, by the Department of Energy and Mining (DEM) in Adelaide. Leigh Creek said the licences were identified during a 2019 South Australian Cooper Basin Acreage Release by the DEM.
However, though the licence applications have been awarded, the company now needs Native Title agreements to be signed before the exploration licences can officially be granted by the Minister of Energy and Mining.
While Leigh Creek has laid out the intended work programs for the new areas, work won’t start until the licences have been granted.
The planned work includes 2D seismic surveying, 3D seismic surveying, and exploration wells within the first five-year permit at PEL 676.
Leigh Creek Managing Director Phil Staveley said the company is delighted to have been awarded what he called “highly prospective” permits.
“Their addition to the portfolio supports Leigh Creek Energy’s short to mid-term strategy and will provide us with optionality in the future,” Phil said.
The two permits are nearby historical hydrocarbon discoveries, according to Leigh Creek. Importantly, the company said the permits provide new opportunities to explore for oil and gas at a relatively low cost.
The company will now be looking to farm down a portion of the permits in order to maximise its exposure across the Cooper and Emoranga Basins.
Shareholders seem impressed with today’s news, with Leigh Creek shares gaining 16.42 per cent in mid-afternoon trade, currently sitting at 7.8 cents each.