Leigh Creek Energy Ltd. subsidiary Leigh Creek Oil and Gas Pty Ltd. (LCOG) has been awarded petroleum exploration license PEL 676 in the South Australian sector of the Cooper basin.
The fragmented permit lies in three parts within a northern extension of the proven Western Flank oil fairway about 150 km northwest of Moomba. It is also adjacent to a much larger area over which the company has made a license application (PELA 675).
LCOG has completed a Native Title agreement over PEL 676 and is now preparing to explore leads within the permit that have been identified from existing 2D seismic. The company plans to acquire new 3D seismic to mature drillable targets.
LCOG has also begun talks with other parties with the intention of farming down a portion of the permit to an operator to take charge of the program.
A relative newcomer to oil and gas exploration, LCOG’s other interests include non-operated interests in Bridgeport Energy-operated Queensland Cooper-Eromanga basin permits ATP 2023 and 2024.
Leigh Creek is looking to diversify its portfolio of exploration permits with a secondary development project to complement its parent company’s flagship coal gasification project near the Leigh Creek coalfields 550 km north of Adelaide in South Australia.
This $2.6-billion (Aus.) project intends to develop an estimated 1,153 petajoules of 2P gas reserves to produce an initial one million tonnes/year of urea with the aim of producing low-cost nitrogen-based fertilizer for local agriculture markets.
