Why the Leigh Creek Energy (ASX:LCK) share price is powering ahead 12% today

What did the company announce to propel its shares higher?

| More on:
These three ASX mining shares rocketed by more than 20% today

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 on the move for the first trading day of 2022. This comes after the energy producer announced it has passed a milestone hurdle for its in-situ gasification project.

At the time of writing, Leigh Creek Energy shares are up 12.5% to 18 cents.

Leigh Creek granted Section 23 authorisation

Investors are driving the company's shares higher after it received approval for development in the Leigh Creek area.

According to its release, the company has been granted authorisation under the Aboriginal Heritage Act by the Minister for Aboriginal Affairs and Reconciliation.

Securing this licence enables Leigh Creek Energy to conduct exploration activities within the former Leigh Creek coalfield in South Australia. This includes the gasification of underground coal deposits using in-situ gasification techniques, drilling of wells, geophysical surveys, and other methods.

The South Australian government allowed the permit after consulting with the local people and the traditional owners of the land. In return, Leigh Creek Energy must minimise disturbance, complying with state government requirements to deliver an environmentally safe project.

Commenting on the news driving the Leigh Creek Energy share price, managing director Phil Staveley commented:

We are pleased with the delegate of the South Australian Minister for Aboriginal Affairs and Reconciliation's positive decision on our project that recognises the significant economic benefits for shareholders, the state economy and Australia's wider food security.

Our commitment, as a company, is to make a positive difference in the areas and the communities in which we operate. To leave behind a better place than we first encountered. What we achieve in the Leigh Creek area will be the proof.

Leigh Creek Energy share price summary

The Leigh Creek Energy share price has gained 3% since the start of 2021. The company's shares hit a 52-week high of 31 cents in April 2021, before treading lower in the months after.

Leigh Creek Energy commands a market capitalisation of roughly $147.26 million and has approximately 866.21 million shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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

Worker at a gas and oil pipeline.
Energy Shares

Woodside shares rise on $2.1 billion sale and partnership

Woodside has struck a deal with JERA. Here's what you need to know.

Read more »

An older couple driving in a convertible on a freeway.
Dividend Investing

1 ASX 200 dividend stock I'm buying for superior passive income in 2024

This ASX 200 dividend stock trades on a juicy yield and could see sizeable share price gains in 2024.

Read more »

Accountant woman counting an Australian money and using calculator for calculating dividend yield.
Energy Shares

Is the 11.3% dividend yield on Woodside shares for real?

Are investors really in line for an 11.3% yield from this oil stock?

Read more »

a close up of a man with wide open eyes and wide open mouth holding his head and reacting in shock and surprise to some share market ews.
Energy Shares

Why is the Strike Energy share price crashing 31% today?

This energy stock has lost half of its value in a month.

Read more »

A smiling woman with a cute dog flings her arm out of the window of a car
Dividend Investing

On the hunt for passive income? Here's what you need to know about the record Ampol dividend

Following today’s record declaration, Ampol shares trade on a juicy 7.2% dividend yield.

Read more »

a man sits on a rocket propelled office chair and flies high above a city
Earnings Results

ASX 200 energy stock Ampol charging higher on record 2023 sales

ASX 200 investors are bidding up the Ampol share price on Monday.

Read more »

two workers in hard hats and high visibility gear give celebratory fist pumps while checking paperwork at a processing site with equipment in the background.
Energy Shares

2 'low risk plays' amid surging ASX uranium shares

Fund manager Monash Investors recommends two particular ASX uranium stocks.

Read more »

an oil refinery worker checks her laptop computer in front of a backdrop of oil refinery infrastructure. The woman has a serious look on her face.
Energy Shares

Woodside share price dips to two-month low upon late news announcement

The oil and gas giant has revealed a major impairment cost for FY23.

Read more »