Southern methane gas explorer L&M Energy - which is
about to be delisted from the stock exchange following a
successful almost $13 million takeover - will bow out of the
public eye holding $4.88 million cash in hand and with several
Taranaki drilling programmes planned.
L&M chairman Geoff Loudon, who heads New Dawn Energy,
initially lent L&M a $6.32 million bridging loan in June,
but by October launched his full-100% takeover offer as
L&M was having difficulty raising cash.
The takeover and compulsory acquisition of the 10% of
outstanding shares was completed last week, with L&M
scheduled to be delisted from the New Zealand stock exchange
on February 5, then the Australian exchange the following
day. The takeover values L&M Energy at $56.7 million.
In its likely last release of information, L&M booked its
cash flow and activities reports on the NZX yesterday.
Net operating cashflows for the previous year were costs of
$3.54 million, including $970,000 for the quarter to
December, with Mr Loudon's bridging loan of $6.3 million
ultimately leaving $4.88 million cash at the end of
year/quarter to December.
Craigs Investment Partners broker Chris Timms said the $4.88
million would likely keep New Dawn in exploration cash for
more than a year, depending on the extent of drilling
''L&M were burning about $1 million cash per quarter, or
$300,000 a month,'' he said.
During the quarterly period, L&M maintained its tenements
in Southland and South Otago and also Taranaki, relinquishing
none of its permitted areas. Nor did it apply for any new
The operational activity report for the quarter focuses on
onshore Taranaki Basin exploration, in a 3-D seismic
programme near adjacent production oilfields.
A separate Taranaki joint venture planning drilling was
interrupted by a gas leak, which had since been sealed in
mid-January, with plans for drilling now restarted.