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.
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.
The post Why the Mineral Resources (ASX:MIN) share price is moving higher appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of May 24th 2021
More reading
- ASX 200 Weekly Wrap: ASX finishes FY21 on a high
- 2 highly rated ASX mining shares that could be buys
- 5 best ASX 200 mining and resource shares of financial year 2021
- These were the best performing ASX 200 shares last week
- The Mineral Resources (ASX:MIN) share price rose 16% in June. Here’s why
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.
from The Motley Fool Australia https://ift.tt/3hBEMqa
Leave a Reply