Leigh Creek Energy (LCK) has reflected on a June quarter that included being granted a petroleum retention licence (PRL) for its key project and being awarded new acreage in the Cooper Basin.
Managing director Phil Staveley said despite the economic impact of COVID-19, LCK continued to progress its business plan.
“Several notable achievements, being the results of annual monitoring from pre-commercial demonstration (PCD) operations, acreage release success, hydrogen optionality progress, and especially, advancing the Leigh Creek Energy project (LCEP) in terms of licensing and funding,” Staveley said.
The granted of a PRL for LCEP provided LCK with security of tenure and a direct pathway to a petroleum production licence (PPL), which is the final approval the company needs for LCEP to produce syngas in commercial quantities.
LCK also progressed approvals with the Department for Energy & Mining (DEM), and moved ahead with its pre-feasibility study (PFS) and environmental impact statement (EIS) required studies for it to become a potential fertiliser producer.
“Initial modelling based on studies from thyssenkrupp indicates that the LCEP can make urea into the domestic and import markets at or below import price parity from the dominant lowest quartile producers from the Gulf States,” LCK reported.
The company is continuing to work on development costs including completing of outbound logistic studies which will be undertaken during the December quarter.
LCK also completed 12 months of site monitoring for its PCD, resulting in: no detected migration of COPs from the gasifier chamber into the surrounding formation; no detection above air quality criteria were measured; and no ground surface subsidence.
“The results prove LCK’s capability to mange in situ gasification within the environment boundaries in accordance with the statement of environmental objectives required under the Petroleum and Geothermal Energy Act 2000,” LCK stated.