Why the Leigh Creek Energy (ASX:LCK) share price is lifting higher today

Securing government licences is a critical milestone for ASX resource explorers.

| More on:
Mining worker wearing hard hat and high vis vest holds thumbs up and smiles

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Leigh Creek Energy Ltd (ASX: LCK) share price is lifting higher today, up 3.7% at the time of writing to 14 cents per share.

Below, we take a look at the licencing announcement that appears to be driving investor interest in the ASX resource explorer, which is a 100% subsidiary of Leigh Creek Oil and Gas Pty Ltd.

What did Leigh Creek announce?

Leigh Creek Energy's share price is gaining today after the company reported it has been awarded a Petroleum Exploration Licence 676 (PEL) in key Cooper Basin oil and gas acreage by the South Australian Minister for Energy and Mining.

The licence enables Leigh Creek to progress with its agreed exploration program, which will focus on leads it identified from existing 2D seismic surveys.

Leigh Creek reported that the Native Title agreement for its prospect has been completed. It now plans a farm down, after which it will commence drilling exploration wells.

In a statement, the company said it chose to invest in Cooper Basin because it offers "a low cost of entry, relatively low risk, potential for near-term revenue as well as a favourable and stable regulator in the South Australian and Queensland governments".

Commenting on the licence award, Leigh Creek's managing director Phil Staveley said:

LCK's portfolio of Cooper Basin exploration permits allow the company to diversify activities with a secondary development project which complements the Leigh Creek Energy Project (LCEP). While building the LCEP remains our ongoing focus the grant of PEL 676 illustrates our continued progress on our portfolio diversification strategy and the ongoing support of the South Australian government.

Leigh Creek Energy share price snapshot

Leigh Creek Energy's share price is up 75% over the past 12 months, more than 3 times the 24% gains posted by the All Ordinaries Index (ASX: XAO).

Over the past month, the Leigh Creek Energy share price has seen a few big ups and downs, and is currently trading right where it was on 3 August.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

Oil worker using a smartphone in front of an oil rig.
Energy Shares

Buying ASX 200 energy shares? Here's Citi's 2025 oil price forecast

ASX 200 energy shares struggled amid a slumping oil price in 2024.

Read more »

Two fists connect in a surge of power, indicating strong share price growth or new partnerships for ASC mining and resource companies
Energy Shares

These 2 ASX 200 utilities shares are reporting next week

Two of the nation's biggest utilities companies will release important shareholder information next week. 

Read more »

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Buy this ASX 200 energy stock for a potential 20%+ return

Bell Potter is tipping this stock to deliver big returns over the remainder of 2025.

Read more »

Gas and oil plant with a inspector in the background.
Energy Shares

How much could $10,000 in Woodside shares be worth in a year?

Would it be a good idea to invest your hard-earned money into this energy giant? Let's find out.

Read more »

Oil worker using a smartphone in front of an oil rig.
Earnings Results

ASX 200 energy stock tumbles despite 50% dividend boost

The ASX 200 energy stock is under heavy selling pressure on Thursday. But why?

Read more »

Happy coal miner.
Energy Shares

Why are ASX coal shares having such a cracking run today?

The latest salvo in the new American tariff war is benefiting some ASX shares.

Read more »

A woman wearing a hard hat holds two sparking wires together as energy surges between them. representing the rising Li-S Energy share price today
Energy Shares

Got $3,000? 3 energy ASX energy shares to buy and hold forever

Analysts think these shares would be great options for investors looking for exposure to the energy sector.

Read more »

Oil rig worker standing with a clipboard.
Energy Shares

What happened with the Woodside share price in January?

Alongside global oil prices, Woodside shares saw some big moves in January.

Read more »