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L&M Energy successful with two South Waikato CSG wells

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8 April 2010 - L&M Energy Ltd has located coal measures in two previously unexplored parts of its large South Waikato coal seam gas permit.

Sources: L&M Energy and Lindsay Clark

The PEP 50348 South Waikato permit, containing over 6 billion tonnes of coal in known fields from Hamilton south to Te Kuiti, has been estimated by L&M Energy to contain a total estimated resource of 770 PJ of coal seam gas.

L&M Energy said that one of recently drilled wells Mangapehi-2 targeted an unexplored part of the Mangapehi coalfield which contains the highest rank coal within the Southern Waikato coal region. The field typically has one seam up to 10 m thick.

This well reached total depth of 604 m after successfully intersecting the target Waikato coal measures. Approximately 3 m of coal was cored with further laboratory analysis being carried out to determine gas contents and saturation levels.

Another well in PEP 50348 Arapae-1, also in a previously unexplored region, successfully intersected Waikato coal measures before reaching its planned total depth of 261 m.

A well in its Ohai, western Southland exploration permit 38220, called OM-4 was also to be deepened with a core rig from the North Island. The top section of the well was previously drilled to a depth of 589 m and protective casing installed.

The OM-4 second stage was programmed to be drilled to a total depth of approximately 1,100 m, targeting the deep, Cretaceous age, Morley coals in the western portion of the permit.

Immediately following OM-4, L&M Energy will drill another South Waikato well Te Kuiti-1. The company is also to drill two wells in its other adjoining North Island permit PEP 51244 (Ohura River). These are the Heao-1 and Maclure-1 wells. They will complete the company’s six-well programme.

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Last updated 9 April 2010

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