L&M spudded Fireball Creek-1, in licence PEP 38521, about noon yesterday, targeting an Eocene-aged Omotumotu sandstone structure containing potential gas resources of up to 40 billion cubic feet.
It expects to reach total depth of about 450m by the end of the week.
L&M is using the small Washingtons Drilling & Exploration rig to drill Fireball Creek-1 in the same area as two wells drilled in the 1940s, SFL-0 and SFL-1, which blew out and flowed uncontrolled gas to the surface.
Last November, L&M announced its first farm-in, taking over operatorship of onshore Westland Basin licence PEP 38521 and earning a 32.5% stake by funding 65% of the cost of drilling Fireball Creek-1.
After the drilling of Fireball Creek-1, the PEP 38521 participants will be L&M Petroleum (operator, 32.5%), Pacrim Energy (35%), McKenzie Petroleum (8.125%), EF Durkee and Associates (8.125%), GRDC (8.125%), and Labrador Energy (8.125%).
