Dual-list L&M Energy is this week set to begin drilling
the first of five wells near Kaitangata in South Otago in its
continued search for commercial quantities of coal-seam
methane gas.
The drilling programme to date included four wells completed
during the last quarter of 2011, where two were drilled to
determine coal-seam depth and thickness and two core wells,
with gas saturation results expected by about April.
LME managing director, Kent Anson, said the drilling
programme for the first half of 2012 was due to start this
week with the well Wangaloa-2, the first of five to be
drilled in a northerly and potentially deeper portion of the
permit; which is 60km south of Dunedin.
"We have a thick sequence of sub-bituminous coals with good
permeability and what remains to be determined is the gas
content and degree of saturation at depth," Mr Anson said in
a statement released this week.
The Kaitangata coal field is "ideally placed" to potentially
supply power generation to significant agriculture and
domestic demand as well as deliver CNG to a strong local
market, he said.
"I remain optimistic that the Kaitangata area holds
commercial gas close to a ready market," he said.
The test-drilling results during the next six months would be
a good guide to determine the potential of the area, he said.
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