L&M Energy to Recommence Drilling in Kaitangata

L&M Energy has said it will recommence drilling later this week within its Kaitangata permit (PEP 38219), located 60km south of Dunedin.

Wangaloa-2, the fifth well in the programme will be drilled to a target depth of approximately 350m. The well is set to test the coal seam gas potential from five subbituminous coal horizons (Capstick, Jordan, Kai Main, Carson and Shore) within the coalfield.

In summary, the programme to date has included four wells completed during fourth quarter of 2011 in order to gather data preparatory to the H1 2012 drilling programme. Of these wells two were stratigraphic which were drilled to determine coal thickness and depth followed by two cores wells, Wangaloa-1 and Lockington-2. Wangaloa-1 was suspended at 507m having reached the depth capacity of the drilling rig. Lockington-2 intersected approximately 8.6m of coal across four coal seams with an average gas content of approximately 1.0m3/tonne.

Outstanding isotherm and gas saturation results are expected early second quarter of 2012.

The first half of 2012 programme starting with well Wangaloa-2 is the first of five wells to be drilled in a northerly and potentially deeper portion of the permit. The programme is intended to give sufficient data to determine the coal seam gas potential of the Kaitangata area.

The Kaitangata permit is located close to the major city of Dunedin and is ideally placed to supply power generation to significant agriculture and domestic demand as well as CNG to a strong local market.