Leigh Creek Energy moves another step closer to commercialisation

Leigh Creek Energy ASX LCK commercialisation Statement of Environmental Objectives Geophysical Operations seismic
Leigh Creek Energy plans to begin 3D seismic acquisition at its namesake project in the next quarter.

Leigh Creek Energy (ASX: LCK) is another step closer to its commercialisation plans after the South Australian Government published a statement of environmental objectives for its namesake project.

The statement of objectives was published in the SA Government Gazette and paves the way for Leigh Creek to proceed with seismic acquisition across the entire Leigh Creek petroleum exploration licence 650.

This is subject to submission of activity notification documentation to the regulator.

“I am pleased to be able to report that the gazettal of the geophysical operations statement of environmental objectives is a significant step forward in allowing the Leigh Creek energy project to commence the preparation of a subsurface model across the whole of PEL 650, which is a major milestone in the project,” Leigh Creek managing director Phil Staveley said.

Upstream development stages

After seismic acquisition, Leigh Creek will then begin exploration drilling, followed by front end engineering and environmental studies.

Leigh Creek has already completed phase one of its required biodiversity and ecological survey, with water and traffic studies underway.

Meanwhile, community and stakeholder engagement are ongoing and Leigh Creek is sponsoring the local doctor service as well as several worthy local causes.

Once activity notification approval has been secured, Leigh Creek 3D seismic acquisition interpretation of an initial area is planned for the next quarter.

This will give the company a detailed 3D image of the subsurface geology, which will enable a subsurface model to be developed followed by design of the underground gasifiers.

According to Leigh Creek, the upstream development phase contains all the activities required to advance to synthetic gas (syngas) production.

Downstream development

Downstream development will comprise provision of a commercial production facility which will either be a fertiliser plant, or gas facility and pipeline.

If a gas plant and pipeline are established, Leigh Creek plans to transport the gas into the east coast network.

Leigh Creek’s strategy is to generate gas and/or ammonia-based fertiliser products from remnant coal resources at its namesake project using in-situ gasification technologies.

The company said its project will provide long-term stability and economic development opportunities to the nearby communities of the Upper Spencer Gulf and northern Flinders Ranges.