L&M Coal Seam Gas plans aggressive drilling programme

Kent Anson, chief executive of L&M Coal Seam Gas, said at the recent inaugural coal seam gas industry briefing that more than 10 wells were planned in its upcoming programme.

“The aggressive work programme is focussed on proving reserves and achieving early gas sales”.

He said the company’s technical team would also be expanded to further explore the company’s four permits in Otago-Southland and two North Island permits. The six permits make L&M Coal Seam Gas the largest CSG permit holder.

The company’s first five well pilot at its Kaitangata (PEP 38219) coal field in south Otago, containing an estimated resource potential of 54 petajoules of coal seam gas, is still undergoing production testing. A further two wells are planned to define the extent of the resource in the estimated 2 billion tonne sub-bituminous coal field.

Mr Anson said more pilot wells are planned later this year at the Central Otago lignite field of Hawkdun (PEP 38218) which has an estimated resource of 57 PJ.

L&M Coal Seam Gas is also planning a third series of pilot wells at its Ohai permit (PEP 38220) in Western Southland, which has an estimated resource of 150 PJ in the sub-bituminous coal field.

Two further exploration wells are targeted for the company’s other Southland permit at Winton where the resource is estimated at 140 PJ.

In the North Island, L&M’s largest permit is South Waikato (PEP 50348) with an estimated resource of 770 PJ and over 6 billion tonnes of coal in known fields. Two exploration wells have recently been completed with a further three planned.

L&M is also planning to drill its first two wells in the permit it acquired early this year in the King Country (PEP 51244) which the company is calling Ohura River.

Sources: L&M Coal Seam Gas and Lindsay Clark