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L&M contracts rig for three Southland wells.
10 April 2007 - L&M Petroleum Ltd has secured a rig to drill three onshore Western Southland Basin wells over next two months.
L&M Petroleum says it has drilled the Eastern Bush-1 well northeast of Tuatapere in the Waiau PEP 38 226 mobilizing with the Washington Exploration rig. This will be the first of the three wells in the Waiau permit for L&M's 2007 oil and gas exploration programme.
The Eastern Bush well is targeting oil in place in the Eocene Beaumont Formation. Eastern Bush-1 is scheduled to spud about 20 April and is expected to take approximately three weeks to drill to its target depth of 2520 metres.
Sydney-based independent geologist Global Capital Resources estimates potential recoverable oil resources of 127 mmbbls in the Eastern Bush structure
The rig will then move to the Dean gas prospect, in the northwest of the Waiau permit, to drill the second well to an anticipated total depth of 2100 m. Dean-1 has been estimated by the independent geologist (before final seismic
analysis) to have a potential recoverable resource of 100 bcf of gas in Miocene turbidites.
The company has the option to drill a third well on the Merton Creek prospect, just north of Eastern Bush-1, to an anticipated total depth of 2500 metres. Merton Creek was a considerably smaller structure than Eastern Bush, and had an estimated potential recoverable resource of 7mm bbls of oil.
The target would not only be the Beaumont Formation but also the early Miocene Clifden limestone.
Mighty River Power, the North Island electricity company, is to fund the drilling of the Eastern Bush well under a farmout agreement with L&M, and in return will earn 50% of any discovery. Mighty River will also earn an option to drill a second well within the PEP 38 226 area for which Mighty River would earn a 50% interest in the well discovery.
L&M Petroleum was dual listed on the Australian and New Zealand stock exchanges in January this year after raising A$20 million in an initial public offering. The company holds four onshore and one offshore petroleum exploration permits in the Western Southland Basin.
Source: L&M Petroleum.
The Eastern Bush well is targeting oil in place in the Eocene Beaumont Formation. Eastern Bush-1 is scheduled to spud about 20 April and is expected to take approximately three weeks to drill to its target depth of 2520 metres.
Sydney-based independent geologist Global Capital Resources estimates potential recoverable oil resources of 127 mmbbls in the Eastern Bush structure
The rig will then move to the Dean gas prospect, in the northwest of the Waiau permit, to drill the second well to an anticipated total depth of 2100 m. Dean-1 has been estimated by the independent geologist (before final seismic
analysis) to have a potential recoverable resource of 100 bcf of gas in Miocene turbidites.
The company has the option to drill a third well on the Merton Creek prospect, just north of Eastern Bush-1, to an anticipated total depth of 2500 metres. Merton Creek was a considerably smaller structure than Eastern Bush, and had an estimated potential recoverable resource of 7mm bbls of oil.
The target would not only be the Beaumont Formation but also the early Miocene Clifden limestone.
Mighty River Power, the North Island electricity company, is to fund the drilling of the Eastern Bush well under a farmout agreement with L&M, and in return will earn 50% of any discovery. Mighty River will also earn an option to drill a second well within the PEP 38 226 area for which Mighty River would earn a 50% interest in the well discovery.
L&M Petroleum was dual listed on the Australian and New Zealand stock exchanges in January this year after raising A$20 million in an initial public offering. The company holds four onshore and one offshore petroleum exploration permits in the Western Southland Basin.
Source: L&M Petroleum.
