- Leigh Creek Energy’s (LCK) subsidiary is granted petroleum exploration licence 676 in key oil and gas acreage of South Australia’s Cooper Basin
- The Native Title agreement has been completed and a work program agreed, with farm-down and drilling of exploration wells to follow
- Managing director Phil Staveley says granting of the licence by SA’s government illustrates LCK’s progress on its portfolio diversification strategy
- Shares are up 3.7 per cent to 14 cents apiece at 1:38 pm AEST
Leigh Creek Energy’s (LCK) subsidiary has been awarded petroleum exploration licence (PEL) 676 in key oil and gas acreage of the South Australian Cooper Basin.
Leigh Creek Oil and Gas (LCOG) was granted the licence by the State’s minister of energy and mining, with the Native Title agreement now completed and a work program agreed.
Notably, LCOG has a diverse number of assets, including oil and gas interests in the Cooper and Eromanga Basins, with the former selected for its low cost of entry and relatively low-risk potential for near-term revenue, as well as its stable regulation by the South Australian and Queensland governments.
In a statement today, parent company LCK said next steps for the licence included farm-down, followed by drilling of exploration wells.
Accordingly, the agreed program of work is set to focus on leads identified from existing 2D seismic surveys, with 3D seismic surveying required to mature drillable targets.
Leigh Creek Energy’s managing director Phil Staveley said granting of the licence reflected progress on its portfolio diversification strategy.
“LCK’s portfolio of Cooper Basin exploration permits allow the company to diversify activities with a secondary development project which complements the Leigh Creek Energy Project (LCEP),” he said.
“While building the LCEP remains our ongoing focus, the grant of PEL 676 illustrates our continued progress on our portfolio diversification strategy and the ongoing support of the South Australian Government.”
Shares were up 3.7 per cent to 14 cents apiece at 1:38 pm AEST.