The Mineral Resources Limited (ASX: MIN) share price is gaining in morning trade, up 1.33%.
Below we take a look at the mining services provider's latest drilling exploration update.
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What did Mineral Resources announce?
Mineral Resources' share price is moving higher after the company reported that Energy Resources Limited (its wholly owned subsidiary) had secured a drilling rig for the Lockyer Deep 1 well.
The conventional gas exploration well is located in the onshore Perth Basin in Western Australia.
The Lockyer Deep Prospect sits on exploration permit EP368. Energy Resources Limited is the operator of the EP368 in a joint venture in which it holds an 80% interest with Norwest Energy NL (ASX: NWE) holding the remaining 20% interest.
The Ensign 970 rig is expected to start drilling later this month.
Energy Resources Limited operates permits covering more than 7,300 square kilometres in the Perth Basin. Combined with its petroleum acreage in the onshore Northern Carnarvon Basin, Mineral Resource's subsidiary company has 13,629 square kilometres of petroleum acreage to its name.
Commenting on the progress of its subsidiary, Mineral Resources managing director Chris Ellison said:
The drilling of Lockyer Deep1 will be a significant milestone for MRL because it will signify the start of an extensive conventional gas exploration program in our onshore Perth Basin and Northern Carnarvon Basin acreage in line with our strategy to secure our own energy at the lowest cost and lowest emissions possible.
Ellison said that if the well is successful, it will help Mineral Resources' goal of achieving net zero emissions by enabling it to use the natural gas it pumps in place of diesel fuel.
"We are fully committed to achieving Net Zero Emissions by 2050," Ellison said, adding that the company believes "owning our own natural gas supply will complement the significant advances we are making in renewable energy, particular around solar and wind power".
With the ever-growing focus on ESG compliance, the Mineral Resource's share price could get some new tailwinds if the company makes marked progress on its net zero goals.
Mineral Resources share price snapshot
Mineral Resources shares have gained 161% over the past 12 months, far surpassing the 23% gains posted by the S&P/ASX 200 Index (ASX: XJO).
Year-to-date, the Mineral Resources share price continues to outperform, up 52% so far in 2021.
