A $5 million funding injection into Ohai and Kaitangata coal-seam gas explorer L&M Energy could be signed off at the end of the month.
The company has spent $3.4 million on a pilot coas-seam gas well at Ohai, which has been held up by technical problems
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It has five wells exploring Kaitangata for potential coal-seam gas deposits.
Earlier this year the company's chairman, Geoff Loudon, lent it $5m to allow it to keep exploring. Mr Loudon's loan would be voted on at L&M's annual meeting in Wellington on June 29, the company says.
The AGM notice says it was necessary for the company to meet its immediate funding needs.
Chief financial officer Bruce McGregor said Mr Loudon's loan was to allow the company to go to the stockmarket at a better time for raising capital.
"The world is in a bit of a state at the moment," he said.
"It is not really a good time to be going out there raising money.
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The Southland Times
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