There is a high potential for coal-seam gas development in the block of Southland land newly open for exploration, New Zealand Petroleum and Minerals says.
The area, to the northwest of Gore and including the settlements of Riversdale and Balfour, was one of 23 blocks of land offered last week by NZP&M.
Bids to explore and develop the blocks must be received by October 15, with the successful applicants announced in December.
NZP&M manager of petroleum strategy planning and promotion Brad Ilg said the company believed the Southland onshore block had a high potential for coal-seam gas (CSG) exploitation.
"We know there is substantial coal of the lignite rank," Mr Ilg said.
"That has been tested in places around the world for coal-seam gas."
L&M Energy is investigating CSG opportunities in Ohai and Kaitangata, extracting gas from sub-bituminous (higher-rank) coal.
Mr Ilg said it was possible sub-bituminous deposits were also in the block offer area.
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Southland Times
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