Mineral Resources Limited’s (ASX: MIN) wholly-owned subsidiary Energy Resources Limited (ERL) has secured a rig to drill conventional gas exploration well Lockyer Deep 1 in the onshore Perth Basin, Western Australia.
Lockyer Deep Prospect is on exploration permit EP368, in the highly prospective northern section of the Perth Basin that is host to several recent conventional gas discoveries.
ERL is the operator of the exploration permit EP368, a joint venture between ERL with 80% ownership and Norwest Energy NL (ASX:NEW), which has the remaining 20%.
The company has contracted Ensign 970 rig, which has just completed three wells in the North Perth Basin and is being mobilised to Lockyer Deep 1 to begin drilling later this month.
Extensive gas exploration program
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.
“Lockyer Deep is an exciting prospect and, if successful, will help us use natural gas as a transitional fuel to Net Zero Emissions by reducing our reliance on diesel.”
Largest petroleum acreage
ERL is the largest petroleum acreage holder in the Perth Basin, operating permits covering more than 7,300 square kilometres.
The MIN subsidiary also holds the largest petroleum acreage in the onshore Northern Carnarvon Basin, and with the combined holding, both basins provide a total acreage position of 13,629 square kilometres.
The Lockyer Deep 1 well aligns with the company’s strategy to secure its natural gas supply to provide energy security for the company’s current and future mining operations at a lower cost and with lower emissions.
Securing own natural gas supply
The company is committed to achieving net-zero emissions by 2050 and is developing a decarbonisation roadmap to enable this target to be achieved as early as possible.
A critical aspect of this journey is to reduce the company’s reliance on diesel fuel and utilising its own natural gas supply as part of the energy transition.
Ellison said: “We are fully committed to achieving net-zero emissions by 2050 and believe owning our own natural gas supply will complement the significant advances we are making in renewable energy, particularly around solar and wind power.”