Chief executive John Bay told PetroleumNews.net from Wellington this morning that the acquisition of about 15km of 2D seismic in the first phase of L&M's CSM exploration program in PEP 38226 (Waiau) should start either late next week or early the following week, winter weather permitting.
He added that Meadow Creek-1 should spud within the next 3-4 weeks and that Wairaki-1 in PEP 38238 (Blackmount) would be drilled immediately afterwards. The target depth of the wells would be about 300-500m, so it should take only a week or so to drill and core each well.
Up to two additional test wells may also be drilled.
The New Zealand Exchange and Australian Securities Exchange-listed junior has already applied for the necessary land access and resource permits for Meadow Creek-1 and Wairaki-1, and will start site construction once the permits have been approved and drilling rig and service supplier contracts are finalised.
The 15km seismic program will be run in parallel to the drilling operations so that the locations of subsequent CSM wells can be confirmed. Access permits will be obtained and site construction undertaken to allow continuous drilling operations after Wairaki-1 has finished.
"The majority of technical and logistical background work required to undertake a campaign of this magnitude has been completed, leading to the spudding of our first drill hole very soon," Bay told PNN.
The company added yesterday that this would be followed by the acquisition of about 15km of additional 2D seismic in each of the two more northern permits, together with drilling up to four additional test wells, depending on the outcome of the seismic interpretation.
In May L&M said its initial review of the CSM potential of its onshore Western Southland Basin permits had identified three potential CSM fairways - Takitimu North, Takitimu South and Longwood. Initial geological analysis indicated these could contain up to 300 petajoules of mean potential CSM resources.
Eocene-aged Beaumont coals, believed to be highly prospective for economic CSM reserves, were present in the fairways that extended for about 85km within PEP 38226, PEP 38238 and PEP 38230 (Te Anau).
"This is exciting for L&M as we embark on our own program exploring a resource that has proved to be a prolific producer in onshore Queensland and could hold the same promise here."
