In a landmark occasion for the growth of New Zealand's emerging coal seam gas sector, L&M Energy's acquisition of L&M Coal Seam Gas was approved by shareholders today in a Special General Meeting in Wellington, creating an energy company with a vastly improved asset position that will be at the forefront of coal seam gas development in the country.

L&M Energy will immediately benefit from the results of a major work programme to both increase its 173 petajoules of 3P gas reserves and also commence the transition to 2P reserves status.

L&M Energy chairman Geoff Loudon said the company was focused on building shareholder value.

'The positive response from shareholders to the acquisition is a strong vote of confidence in the direction the company is taking.'

He said the company's shareholder meetings around New Zealand were well attended and demonstrated the level of interest in coal seam gas as a source of energy in New Zealand.

'Coal seam gas has been undervalued as a resource in New Zealand but has huge potential. The new L&M Energy is moving quickly to unlock that potential.'

Tags: L&M Petroleum Limited