L&M to start drilling in western Southlandadmin
L&M Petroleum plans this week to start drilling its first well in the Eastern Bush Prospect in the Waiau Basin, in western Southland.
Eastern Bush No 1 is an onshore well programmed to be drilled to a total depth of 2520m to test a seismic geophysical anomaly.
The top of the targeted Beaumont Sandstone is similar to the Maui and Mangahewa petroleum reservoirs of the Taranaki Basin.
L&M said it hoped to test the Beaumont Sandstone that it estimates contains potentially 253 million barrels of oil.
Bonus Drilling (NZ) would drill two to three deep wells this year. The Eastern Bush No 1 well was expected to take three weeks, after which the rig will be moved to drill the second well in the programme on the company’s Dean Prospect, also within the Waiau Basin.
L&M Petroleum is drilling the well under a farm-out deal with State-owned Mighty River Power. MRP pays much of the drilling costs and earns an interest in the Eastern Bush Prospect plus the right to participate in the second well.
L&M Petroleum, dual listed on the ASX and NZSX, in January raised $A20 million ($NZ22 million) in an Initial Public Offering. The company holds four onshore and one offshore exploration permits in the Western Southland Basin and said it would carry out an aggressive exploration programme over the next two years.
Information from: www.stuff.co.nz