On Friday afternoon, L&M announced it was preparing to plug and abandon the Eastern Bush-1 exploration well at a depth of 1780m after well log analysis indicated insufficient hydrocarbons to warrant continuing the well to basement.

Managing director John Bay said the Bonus Drilling-2 rig would now be moved to the next well in the program, Dean-1, also within the Waiau Basin permit PEP 38226, western Southland. He expected this well to spud late next week.

Dean-1 is scheduled to be drilled to a depth 2100m and the Dean prospect is projected to contain best estimate potential resources of 194 billion cubic feet of gas originally in place.

Earlier last week, L&M plugged and abandoned the shallower Sharpridge-2, also in PEP 38226, at a depth of 321m, when the well encountered basement some 130m higher than prognosed.

L&M is now drilling Sharpridge Creek-3, about 190m west, essentially as a sidetrack.

L&M has 100% equity in the Sharpridge Creek wells.

It is drilling the deeper Waiau Basin wells in conjunction with government-owned Mighty River Power, with MRP earning its 50% stake by contributing to the drilling costs of the wells.