Hours after completing a successful almost $13 million
takeover of dual-listed methane gas explorer L&M Energy,
its owners bought out their Taranaki joint venture partner in a
$664,000 deal, plus royalties.
L&M had agreed to purchase the 75% stake of partner
Mosaic Oil New Zealand, paying $264,000 and $400,000 to
reimburse Mosaic its costs, plus a 15% royalty of net gas
sales up to $A1.5 million ($NZ1.88 million), BusinessDay
L&M chairman Geoff Loudon and his company New Dawn Energy
yesterday gained the 90% shareholder acceptances they
required, triggering a compulsory acquisition of the
outstanding L&M shares. New Dawn will take over several
methane coal gas exploration projects in South Otago and
Southland, where millions of dollars have been spent in
recent years on test drilling programmes.
The Kahili permit in Taranaki is a gas prospect and is yet to
be proven commercially viable, but is adjacent to several
other gas producing wells. It is scheduled to be test drilled
by New Dawn shortly.