The hunt for short and medium term revenue and growth has led Leigh Creek Energy (ASX:LCK) to farm into two permits in the Cooper and Eromanga Basins in Queensland.

It is earning a 20 per cent interest in ATP 2023 and ATP 2024, covering 434sqkm and 421sqkm respectively, from Bridgeport Energy for a total of $6.34m.

These permits are located 10km north of the Jackson field – Australia’s largest onshore field – and are underexplored given that just two exploration wells and varying vintages of 2D seismic have been carried out to date.

Read: Who’s spinning the drills in Australia’s onshore heavyweight Cooper Basin?

The permits provide opportunities for multiple conventional oil and gas plays, while their proximity to existing infrastructure minimises any future tie-in and operational costs.

Bridgeport has already identified 15 leads with a focus on the highly prospective Hutton Sandstone oil and Toolachee Formation gas plays.

Both plays are well known sources of oil and gas respectively in the Cooper Basin.

Leigh Creek says the planned acquisition of two 300sqkm 3D seismic surveys in the second permit year is expected to mature the leads into drillable prospects.

“This partnership is complementary to the Leigh Creek Energy project and will diversify our portfolio, adding potential for multiple revenue streams,” managing director Phil Staveley said.



In other ASX energy news today:

Galilee Energy (ASX:GLL) is preparing to drill three coal seam gas coreholes at its Kumbarilla project that sits adjacent to APLNG’s Ironbark asset in Queensland. The wells are positioned to fully core the 300m thick, coal-bearing sections of the Walloons Subgroup to assess their potential for future reserves and commercial production.

Results from this initial drilling will be used to define further exploration drilling across the 384sqkm project and the placement of a production pilot to mature the project’s best estimate contingent resource of 3,012 petajoules of gas into reserves.

Kumbarilla is less than 10km from existing coal seam gas production facilities, which will allow any commercial reserves to be quickly brought into the east coast gas market.