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L&M’s Ohai CSG coal fully saturated
4 August 2010 - Lab testing of coal core from L&M Energy’s promising OM-4 well near Ohai in Western Southland has confirmed that the coal is fully saturated with gas.
Sources: L&M Energy and Lindsay Clark
Wellington-based L&M Energy says the gas desorption testing of cores obtained to date show that the Morley Formation coals contain up to 11 m3 of gas per tonne.
Isotherm testing confirmed that the coals are fully saturated with gas, the composition of the gas is also excellent with methane levels between 97 - 99%.
L&M Energy says the results further support the existence of additional gassy Morley coals recoverable reserves within the adjacent Waiau permit PEP 38226. These results are not currently included in the 173PJ of 3P reserves that were independently certified late last year.
Following coring, the OM-4 well located in the Ohai PEP 38220 has been suspended as a future production well. The well found that the gassy coal from the Cretaceous Morley coal measures were over 750 m downhole, and twice as thick as the Beaumont coal measures found at around 600 m deep. A total of 40 m of coal was found in the OM-4 hole.
L&M Energy says pre-well planning is now underway for the drilling of a coal seam gas pilot production project in the Ohai permit, work is scheduled to begin in September. The company says it aims to certify the first tranche of 2P coal seam gas reserves at Ohai early in the New Year.
L&M Energy recently raised about $8.5 million for production testing and booking of 2P CSG reserves in Western Southland and further exploration drilling in the area.
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