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

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

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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.

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