Leigh Creek Energy receives second AN for LCEP project in Australia

Leigh Creek Energy (LCK) has received an activity notification (AN) that allows it to move closer to the demonstration of gas flow at the pre-commercial demonstration (PCD) stage of the Leigh Creek Energy Project (LCEP) in South Australia.

The approval for drilling of in-situ gasification (ISG) process wells represents the second of the three ANs required for gas flow, which is scheduled to take place in the third quarter of this year.

Prior to the submission of the ANs to the regulator, the company received approval of the Statement of Environmental Objectives (SEO) for the LCEP PCD last month.

ANs provide details to the regulator regarding the specific activities that will be carried out under the SEO framework.

The outstanding AN is related to PCD operations, including operating, decommissioning and monitoring.

LCK managing director Phil Staveley said: “Site construction mobilisation activities commenced immediately after approval of the first AN, and are on schedule.

“LCK and its drilling contractor will now commence drilling the ISG Process Wells, and progress towards planned gas operations in Q3 2018, unlocking a significant energy resource in South Australia.”

The company is now planning to drill three process wells to service the underground ISG chamber, which is set to run for four to five weeks.

The project comprises the 2C resource of around 2,963.9PJ.

LCK aims to upgrade a portion of the 2C resource to a 2P reserve.