Leigh Creek Energy (ASX:LCK) says it now has “one of Eastern Australia’s largest undeveloped and uncontracted gas reserves”.

The company told investors today that its Leigh Creek project in South Australia’s Telford Basin now hosts 1.1 trillion cubic feet of 2P gas reserves.

A 2P reserve means it’s proven and probable.

  • Scroll down for the ASX’s other corporate movements today.

And there’s still more potential for additional reserve upgrades.

The news sent shares up over 33 per cent to an intra-day high of 42c just after market open on Wednesday.

Leigh Creek Energy (ASX:LCK) shares are on a tear after a series of positive announcements.
Leigh Creek Energy (ASX:LCK) shares are on a tear after a series of positive announcements.

Leigh Creek said that a comparison of its reserve to the Australian Competition and Consumer Commission analysis of Australian gas reserves and resources indicated that they were about the same size, on a 2P reserve basis, as the entire Cooper Basin.

The Cooper Basin, one of Australia’s largest and most important onshore oil and gas locations, contains about 150 gas fields and 90 oil fields currently on production.

These fields host roughly 700 producing gas wells and more than 360 producing oil wells.

Leigh Creek added that its namesake project hosts a larger 2P reserve than the Otway, Bass, Gunnedah, Clarence-Moreton, Sydney and Galilee Basins combined.

“This independent confirmation and certification of such a large 2P energy reserve means that LCK can further advance with its negotiations with potential joint-venture partners on investment structures and the full-funding solutions for a commercial facility at the Leigh Creek energy project,” chairman Justyn Peters said.

In late February, Leigh Creek revealed it could successfully produce commercial quantities of synthetic gas.

The company has been testing a pilot plant which converts underground coal into gas, which it plans to turn into products like fertiliser.

 

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