Leigh Creek Energy Limited
Central Petroleum Limited
(ASX: LCK)
(ASX: CTP)
Plans by this Adelaide-based junior to enter South Australia’s energy sector were given a significant boost earlier this quarter when the market injected over $3 million into its flagship project. During August, Leigh Creek Energy (LCK) confirmed it had secured approximately $3.2 million (before costs) from institutional, sophisticated and professional investors to advance what is currently the country’s largest uncontracted gas reserve available to east coast customers. Using in situ gasification (ISG) technologies, the company plans to convert remnant coal resources into synthetic natural gas (syngas) and/ or ammonium nitrate products (fertilisers and explosives) at its South Australian Leigh Creek Energy Project (LCEP), where economic flow rates (1 million cubic feet of syngas per day) have already been established via environmentally-compliant pre-commercial demonstration work at the site earlier this year. Located 550 kilometres north of Adelaide, the LCEP currently has a maiden 2P reserve of 1,153 petajoules. According to LCK, potential markets for this asset include pipeline gas (888PJ), ammonia (31 million tonnes), urea (53Mt), diesel (8 billion litres) and electricity (246,783 gigawatt hours). The company is seeking an agreed pathway towards commercial ISG development with the state government, and is confident the project will provide both long term stability and economic development opportunities in regions like the Upper Spencer Gulf and northern Flinders Ranges. According to LCK’s managing director Phil Staveley, strong share market performance also indicates growing investor recognition of the fledging energy player’s commercial abilities. “This capital raising continues to demonstrate strong support for the company and its plans to commercialise the large gas reserve at the LCEP,” he said. “With its maiden gas reserve, LCK is poised to expand exponentially in the near future.”
Having tapped into the lucrative east coast energy market earlier this year, Brisbane-based Central Petroleum (CTP) is entering its next growth phase as it ups its exploration ante while focusing on operational performance at its three Northern Territory gas fields. The company not only finished the June quarter with improved gas sales, a robust cash flow and a solid bank balance, but in July also announced plans to establish 2C resources for its Project Range Joint Venture in Queensland’s Surat Basin prior to any pilot well production testing. Along with 50:50 JV partner Incitec Pivot, CTP is targeting the coal seam gas (CSG) potential of the highly prospective Walloons coals. Meanwhile, drilling has resumed at its Dukas JV (with Santos as the 70% farm-in partner) in the NT, where the focus is on sub-salt closures in the southern Amadeus Basin. Although success at either project could see CTP expand its east coast market, it believes Dukas - given its potential size - could well be a company changer. Not that CTP hasn’t already been going through a few significant developments in 2019. At the end of January it hooked up with the 622 kilometre Northern Gas Pipeline, a transformational infrastructure project linking Tennant Creek with Mount Isa. This helped CTP sell four petajoules of gas for $19.5 million (net of gas purchased and sold) during the June quarter – an 8.6 per cent increase in sales over the March reporting period – with the bulk of this production coming from its Mereenie and Palm Valley fields in the NT. This cash flow ensured the company finished the financial year with $17.8 million in the bank – funds which can be channelled into further growth opportunities.
EMAIL contactus@lcke.com.au WEB www.lcke.com.au
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EMAIL info@centralpetroleum.com.au WEB www.centralpetroleum.com.au