up 120 percent

Nice.... still cheap at these levels....

Substantial Coal Seam Gas Potential Indicated

L&M Petroleum Limited is pleased to announce that an initial analysis of the coal seam gas
potential within the Company’s onshore Western Southland Basin permit areas has resulted in
the identification of three potential coal seam gas fairways, estimated to contain up to 300 Bcf
of mean potential coal seam gas resources.
The analysis has identified known occurrences of Eocene age Beaumont coals (highly
prospective for economic coal seam gas reserves) are present in three fairways (Takitimu
North, Takitimu South and Longwood) running over a distance of some 85km within the
Company’s permits (see map attached).
Based on the results of the review, the Company will be undertaking an aggressive exploration
programme to confirm the CSG resource contained within its permits.
The exploration programme will focus initially on the Takitimu South fairway, in northeast of
the Company’s PEP 38226 (Waiau) permit, the southern end of which bounds the Ohai
Coalfield, where both Eocene age Beaumont coals and older Cretaceous age Morley coals
have been found previously. Over 40 core holes drilled previously within the Ohai Coalfield
area have tested gas, with desorption testing showing Morley coals in this area containing up
to 10 m3/tonne of coal seam gas.
Commencing in June 2008, the Company will be:
• Drilling three CSG wells within PEP 38226 (Waiau);
• Acquiring 15km of new 2D seismic within each of its three permits (45km total) to
confirm additional CSG targets; and
• Drilling up to five additional CSG targets (contingent on the outcome of seismic
analysis).
The cost of this work programme is expected to be ca. NZ$2 million, which the Company is
able to fund out of its current cash.
LMP’s CEO, John Bay, commented “this is a very exciting programme for the Company. Our
Western Southland Basin permits appear to be some of the few that contain both conventional
petroleum exploration opportunities, such as the deeper Whitestone and Otahu structures that
we are currently seeking farmin partners for drilling later this year or in early 2009, as well as
shallower coal seam gas opportunities.