Leigh Creek Energy Ltd (ASX:LCK) has received reserve certification for its syngas resource, which effectively unlocks South Australia’s largest gas reserve for commercial use.
The company received a Petroleum Resources Management System (PRMS) certificate of 1,153PJ (petajoule) 2P syngas reserves, making Leigh Creek’s commercial deposit in the state's north larger than reserves within the Cooper Basin.
It is the east coast's third largest gas reserve for commercial use outside the Bowen/Surat and Gippsland basins.
Commercial phase and scope for more gas upgrades
Leigh Creek’s managing director Phil Staveley said the company’s gas reserve was large enough to support operating 20 or more chambers in commercial applications for more than 20 years.
“LCK has achieved all its milestones, many of which the market doubted.
“We now have gas at Leigh Creek that has been independently certified as suitable for a commercial project, and represents one of the east coast of Australia’s largest, undeveloped, uncontracted and undervalued gas reserves.”
This 2P reserve of 1,153PJ is entirely within one of the three coal seams within the Telford Basin, meaning there is additional opportunity for reserve and resource upgrades in the future from other seams.
The size of the reserve and scope for more certifications at the former Leigh Creek coal mine site means LCK has capacity to enter both the pipeline gas and fertiliser production markets.
LCK's successful Pre-Commercial Demonstration (PCD) used In-Situ Gasification (ISG) technology to produce all its targeted commercial gases and flow rates from the former coal mine site.
Flows came from a single chamber and were achieved safely and in accordance with the state government’s strict environmental and regulatory guidelines.