Monday, March 12

L&M Energy drilling second well in current New Zealand coal seam gas exploration program

L&M Energy (ASX: LME) has spudded the second of 5 coal seam gas wells that it is drilling on the northern and potentially deeper portion of PEP 38219, New Zealand.

Taratu-1 is located about 3 kilometres west of the first well, Wangaloa-2, and will be drilled to a total depth of about 350 metres.

Wangaloa-2 well was drilled to a total depth of 399 metres after intersecting thin coal seams that were considered to be unsuitable for further testing.

The 5 well program is expected to give sufficient data to determine the CSG potential of the Kaitangata area.

L&M had drilled 4 earlier wells, 2 stratigraphic wells aimed at determined coal depth and thickness along with 2 core wells.

Kaitangata is ideally placed to supply power to agricultural and domestic users in the Dunedin area as well as compressed natural gas, making it easy for L&M to develop a commercial project.

The target seams in Kaitangata are Cretaceous-aged averaging about 15 metres in thickness.


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