$69 postpage LB

Leigh Creek Energy Receives PRMS 2P Certification For LCEP

  • March 28, 2019 01:16 PM AEDT
  • Team Kalkine
Leigh Creek Energy Receives PRMS 2P Certification For LCEP

Leigh Creek Energy Limited (ASX: LCK), headquartered in Adelaide, is an emerging energy company with a primary focus on developing its Leigh Creek Energy project located to the north of Adelaide, South Australia. It explores for coal and synthesis gas including methane, hydrogen, and carbon monoxide.

Gold MTF non-AMP

On March 27th, 2019, the company informed the market that it has received a PRMS certification of 1,153 PJ 2P at the Leigh Creek Energy Project (LCEP) from the US-based MHA Petroleum Consultants. This follows the company’s earlier announcement that the discussions were underway with PRMS consultant concerning the upgrade of a portion of its 2,964 2C Resource to 2P and 3P Reserve status.

The 2P certification follows the production at the pre-commercial demonstration plant (PCD) at the LCEP which included all industrial gases with targeted commercial flow rates from a single gasifier. It further affirms the economic value of the project, which is now one of largest undeveloped and uncontracted gas reserves in Eastern Australia.

The development marks a key milestone for the company that can now proceed to negotiations with the potential joint-venture partners concerning the investment structures and financing solutions for a full-scale commercial facility. When in full production, LCEP will generate stellar economic opportunities for the company and its stakeholders.

Going forward, Leigh Creek Energy has a couple of commercialization paths when LCEP gets entirely operationalized. These include the sale of synthetic natural gas into the Australian East Coast market or utilizing the gas to manufacture ammonia-based fertilizer products, both of which have highly positive economic returns. While the company can enter both the markets, it is planning to progress on a dual path, that is a combination of the two options.

Earlier in March 2019, the company informed the market that it had closed the oversubscribed pro-rata 1-for-15 non-renounceable rights issue on February 28th, 2019 at 5.00 pm, which commenced in January 2019 and received strong support from shareholders and investors. Around 15,535,591 entitlement shares were issued to the shareholders on March 7th, 2019 and 16,610,133 additional shortfall shares were issued on March 19th, 2019. The offer raised around AUD 3.86 million of funds that will be utilized primarily as the working capital.

For the half-year ended December 31st, 2018, the company recorded a total loss from continuing operations at ~ $ 4.36 million, up on $ 2.82 million in the prior corresponding period (PCP) ended December 31st, 2017. The net assets were valued at approximately $ 26.34 million including net cash and cash equivalents of $ 4.26 million at the end of the period. The operating activities resulted in net cash inflows of $ 6.29 million primarily due to substantial R&D rebates received (~ $ 9.01 million). This was further boosted by cash inflows of $ 3.77 million from financing activities. On the contrary, the investing activities amounted to net cash outflows of $ 15.12 million.

The LCK stock price soared by 30.16% to AUD 0.410 with the end of the trading session on March 27th, 2019 Today, the stock is trading 12.2% down at AUD 0.360 (as at 1:00 PM AEST, March 28th, 2019). LCK has also generated a positive and high YTD return of 241.67 so far.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.



The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK