LMP 3.57% 13.5¢ l&m petroleum limited

here it is:Exploration drilling has begun in Southland for a gas...

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    here it is:

    Exploration drilling has begun in Southland for a gas supply that could be the size of Taranaki's Kupe field.

    The gas lies deep underground near Ohai, right next door to a coal field.

    Deep underground in Western Southland could lie a massive untapped resource - up to 300 petajoules of coal seam methane gas; enough to power the entire south island for many years.

    Drilling has just begun on three exploration wells near Ohai's old coalmines. Success could bring a fundamental change to Southland's economy.

    L&M Petroleum CEO John Bay said there was no existing gas supply in Southland, so it would be the start of a whole new economy in the region.

    Coal seam gas is absorbed into the coal. Once the bane of miners, it is now seen as a viable alternative to LPG.

    "All the gas is used. It's exactly the same as any other natural gas, it's pure methane, and it has all the exact same uses as natural gas," Mr Bay said.

    Mineral coring rigs are drilling deep down to reach the coal seams, trapped about 250 metres underground

    It is not the only untapped natural resource - the minerals industry says there is potentially $250 billion worth of gold, metals, and coal, on top of oil and gas.

    That puts New Zealand second only to Saudi Arabia in terms of mineral wealth per head of population - wealth that could remain buried under the emissions trading scheme.

    Doug Gordan from the New Zealand minerals industry association said to ban coal and gas for energy generation was just downright irresponsible

    He believes New Zealand is shooting itself in the economic foot by fast tracking the legislation.

    Those political issues have not halted the drill in Southland - eight wells will be explored this year, with the potential for hundreds more, but it will be at least three years before the first commercial supplies are extracted.
 
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