L and M Petroleum jumps 7 per centBy Mitchell Hall | Friday...

L and M Petroleum jumps 7 per cent

By Mitchell Hall | Friday August 22 2008 - 03:49pm
L & M Petroleum (LMP) announced today its Goodwin-1 well drilling operations,by lifting its share price 7.14 percent today to $0.15.

The well drilling and coring operations are projected to take five days to reach the total depth of approximately 250m.

The Goodwin-1 well is the first of three wells to be drilled by the company in the South Island, targeting up to 300 PJ of coal seam gas resources.

L & M is looking to create a coal gasification plant that will burn five million tonnes of lignite a year, which would translate into 50,000 tonnes of diesel a day.

This would meet New Zealand’s entire needs and still have enough left over for export.

The company intends to drill up to eight wells in 2008 to help confirm the extent of the coal seam gas potential resources contained within its permits, with their initial analysis indicating its onshore Western Southland Basin permits may hold up to 300 PJ of CSG potential resources.

http://www.nbr.co.nz/article/l-and-m-petroleum-jumps-7-cent-34312