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LIVE

Thursday, 21 August, 2008, 21:20 GMT | more prices >>

L&M set to sniff out CBM

By Upstream staff

L&M Petroleum is poised to start a seismic shoot and drilling programme targeting 300 petajoules (8 billion cubic metres) of coalbed methane on its permits in the Western Southland basin in New Zealand.

The first phase of the exploration programme includes shooting 15 kilometres of 2D seismic within permit 38226, known as Waiau, and the drilling of up to four CBM test wells. This will be followed by another seismic sweep of 30 kilometres in the company’s permits to the north and possibly four additional CBM test wells.

The first two wells to be drilled are the Meadow Creek-1 well in Waiau and the Wairaki-1 well in the adjacent permit 38238, also called Blackmount. The outfit said it is currently finalising the contracts for the drilling rig and service suppliers.

The first well, Meadow Creek-1, is expected to be sunk within the next three to four weeks and the Wairaki-1 will be drilled immediately after.

The 15-kilometre seismic sweep will be run in tandem to the drilling operations so that the sites of subsequent CBM wells to be drilled can be shored up, the company said.

The seismic shoot is set to begin in mid-July.

The Wellington-based outfit said that initial geological analysis signals the Western Southland basin permit area may contain around 300 petajoules of potential CBM resources.

The company is listed on both the Australian and New Zealand stock exchanges.