Leigh Creek obtains initial PRMS ISG gas resources certification

Leigh Creek Energy (LCK) has achieved a major milestone in the achievement of a 2C SPE-PRMS ISG gas resource of 2963.9 PJ at its flagship Leigh Creek Energy project (LCEP) in South Australia.

This has been reported in accordance with the Society of Petroleum Engineers – Petroleum Resources Management System (PRMS). PRMS is the internationally recognised standard for reporting oil and gas resources and reserves.

The gas resource was independently assessed by MHA Petroleum Consultants LLC (MHA) of Denver US, who certified the following resources: 1C 2,747.7 PJ, 2C 2,963.9 PJ, 3C 3,303.1 PJ.

All numbers quoted represent MHA’s opinion of gas energy recoverable at the LCEP.

The aim of the LCEP is to produce high-value products, such as methane and fertiliser, from the remnant coal resources at Leigh Creek using in-situ gasification technologies, and will provide long-term growth and opportunities to the communities of the northern Flinders Ranges and South Australia.

LCK has commenced discussions with several potential gas buyers in 2015 and continues to actively work towards selling gas in the ground with upfront payments from potential buyers. The company is currently in discussions with companies who wish to purchase gas.

Following the completion of the SPE-PRMS resource, LCK expect to rapidly progress negotiations with potential customers.

The Chairman of LCK commented: “This PRMS gas resource announcement is an exciting and important milestone in the development of the Leigh Creek Energy project and underpins our original assumption that the LCEP contained significant quantities of recoverable gas from which we intend to produce commercial quantities of gas. We are pleased with the progress of gas sales discussions and intend to deliver binding gas supply contract in the June half 2016.“Independent gas resource certification helps accelerate the LCEP development timetable as it provides added confidence to domestic and international buyers of gas, investors in LCK and future debt providers. I look forward to updating stakeholders with the outcomes of these negotiations with additional news.”

The LCEP is nearing completion of the first phase of the project with the recent Inferred JORC resource, commencement of environmental baseline studies and now MHA’s ISG Gas Resource certification.

In the March quarter of 2016 LCK will commence phase two of the LCEP, which will work towards demonstration and flaring gas in December quarter 2016.

Edited from press release by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/coal/08012016/leigh-creek-obtains-initial-prms-isg-gas-resources-certification-19/