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L&M ENERGY LTD - ASX: LME
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Description
The evolution to L&M Energy (new stock code on the ASX and NZX: LME) reflects our drive to deliver value to our shareholders by developing a more diverse range of energy resources. Such energy and drive was demonstrated when we announced on 24 December 2009 that we had entered into a conditional sale and purchase agreement to acquire all of the issued share capital in privately owned New Zealand company, L&M Coal Seam Gas Limited (LMCSG).
The acquisition has seen LME add six coal seam gas expoloration permits to its asset portfolio including an initial 173 PJ of independently certified 3P gas reserves. This portfolio of assets, together with the existing permits held by LME, has created a larger, dual-focused coal seam gas and conventional petroleum exploration and development company, with a leading position in New Zealand's emerging coal seam gas sector.
Petroleum
L&M Energy holds six petroleum exploration permits totalling 5,143km2 in four basins in :
1. Onshore Taranaki Basin - PEP 51151 ( Alton ) - 50% holding in the Alton Joint Venture with Mosaic Oil
2. Onshore Westland Basin - PEP 38521 (West Coast), PEP 50558 (Hohonu
3. Offshore Solander Basin - PEP 38237 (Waitutu)
4. Onshore Western Southland Basin - PEP 38226 (Waiau) - 90% holding in the Waiau JV with Mighty River Power, PEP 38238 (Blackmount)
We are NZ's only Oil and Gas Exploration Company with a portfolio of higher risk drill ready large conventional prospects and lower risk Coal Seam Gas opportunities. To date we have drilled 4 conventional oil and gas wells in the South Island and retained exploration permits with resource potentials of up 1 trillion cubic feet (tcf) of gas and 300 million barrels (mmbls) of oil. In 2008/2009 we focused our exploration activities to explore for Coal Seam Gas in Southland and drilled 5 cored wells which all intersected gas-bearing coals. We plan to drill a further 4 wells and undertake a well flow test to determine both gas deliverability and book reserves. New Zealand’s demand for gas, oil and power is projected to remain strong for the foreseeable future and we believe that commercialisation of discoveries in the South Island will be possible in relatively short time spans. We continue to seek opportunities to add value for shareholders through both oil and gas exploration and corporate acquisition opportunities.
Coal Seam Gas
Coal Seam Gas (CSG) is a new and developing source of natural gas worldwide. Recent changes in the New Zealand energy scene have prompted renewed interest in activity in the area of CSG exploration. CSG is essentially natural gas, largely comprised of methane. It is suitable for the same uses as conventional natural gas. The potential of New Zealand’s coals to produce CSG has been recognised for some time, and exploration work has been carried out since the mid 1980s. L&M Coal Seam Gas, recognising the potential for CSG in New Zealand, initiated what is the largest-ever assessment of New Zealand’s coal seam gas potential. Currently there are 16 coal seam gas permits, of which L&M Energy are the largest individual permit holder, with 4.
Exploration activity is increasing, with 8 exploration companies now active within the sector.
To date, L&M Energy has drilled 52 exploration wells, conducted multiple 2D seismic surveys to ascertain prospectivity, conducted production testing across three permit areas, commenced the first pilot project and have Gas Reserves Certification underway. We have carried out a very detailed evaluation of a number of areas since 2001 with encouraging results. Our current assessment has indicated that the permits have the potential to contain an energy resource in the order of 1,100 petajoules. We are currently undertaking economic and environmental studies on our permit areas.
Mine For
coal seam gas, oil, gas
Location of operation(s)
New Zealand
Address
Level 9, St John House, 114 The Terrace
WELLINGTON, , NEW ZEALAND
Phone
(64 4) 473 0415
Website
Last Updated
23/03/2011
The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.
