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Reliable Energy for South Australia
In January 2016, LCK announced a 2C SPE-PRMS ISG gas resource of 2,963.9 PJs at its Leigh Creek Energy Project, reported in accordance with the Society of Petroleum Engineers. Electricity and gas marketing is being conducted to assist in commercialising this large gas resource.
The focus of LCK was initially power generation to meet its own internal needs, ahead of pipeline gas sales and potential for other value add products such as ammonia and urea. Since early 2016 the focus has been augmented to include power generation for external sales as this approach:
Leigh Creek Energy Limited > News > Historical Announcements > Archived Announcements
- is profitable and less technically complicated in the initial stages;
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//has received strong interest from major customers in the region for reliable long term base load electricity supply given the changing local electricity market fundamentals; and
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//provides a relatively low capital start-up cost with significant cash flows providing increased flexibility for longer term capital requirements for production of pipeline quality methane.
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Investors LCK has also been granted an initial five-year Gas Storage Exploration Licence (overlapping the Leigh Creek PEL 650) that provides LCK optionality between storing gas, or delivering gas to east coast customers. Shareholder Information
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