Leigh Creek Energy Limited’s 100 owned subsidiary, Leigh Creek Oil and Gas Pty Ltd, has been awarded Petroleum Exploration Licence 676 (PEL) in key South Australian Cooper Basin oil and gas acreage.
On Friday, Leigh Creek Energy said that it selected the Cooper Basin as an area to invest in as it provides a low cost of entry, relatively low risk, potential for near-term revenue as well as a favourable and stable regulator in the South Australian and Queensland governments.
Leigh Creek Oil and Gas previously identified prospective areas in the Cooper Basin that aligned with its strategy of providing opportunities to explore for oil and gas at a relatively low capital cost given the proximity to existing infrastructure.
The areas of interest have a stratigraphy that mirrors the Western Flank oil fairway and target oil accumulations in the Birkhead Formation and Hutton Sandstone.
Having recently completed a Native Title agreement, Leigh Creek Oil and Gas has now been granted PEL 676 by the South Australian Minister of Energy and Mining which permits exploration to progress in line with the agreed program of work.
The program will focus on leads identified from existing 2D seismic with 3D seismic required to be undertaken to mature drillable targets.
Leigh Creek Energy notes that its initial priority is on engagement with targeted parties to farm-down a portion of this permit to an operator.
In commenting on the award of PEL 676, Leigh Creek Energy Managing Director, Phil Staveley, said: “Leigh Creek Energy’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). 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.”
