Dual-listed coal-bed methane gas explorer L&M Energy has signalled a busy 2011 work programme covering its wide-ranging tenements in Otago, Southland and Taranaki.
In a company overview at its annual meeting in Christchurch this week, shareholders were told L&M, with market capitalisation of $100 million, was carrying no debt and was fully funded for its extensive 2011 work programme.
In Southland at its Ohai site, a coal seam gas pilot programme was under way. Installation of a 1MW power station would begin shortly for electricity supply.
At the nearby Waiau site, additional exploration drilling was planned during the year.
L&M's estimated gas reserves at Ohai were upgraded by almost 60%, from 173 petajoules of energy to 274 petajoules, in an independent report released last October. In Kaitangata, South Otago, further resource evaluation is planned once permits are obtained.
At onshore Taranaki sites, drilling is planned for the middle of the year at Alton, while at Kahili, a seismic programme will be completed and a decision on drilling is due by late this year.
At L&M's offshore Taranaki tenement, Kaheru, existing 3-D seismic data will be reprocessed, with a drill decision likely in the second quarter of the year.
