L&M Petroleum says that as of 19:00 on 4 May the Bogle-1 well was at a depth of 483m, coring in the Beaumont Formation, which is the primary coal bearing formation targeted in this well. The top of the formation was encountered at a depth of 445m, with first coal encountered at 453m. The Bogle-1 well, located in the central portion of petroleum exploration permit (PEP) 38226 (Waiau) adjacent to the proven Ohai coalfield, is the first of seven wells to be drilled in the Company’s 2009 coal seam gas (CSG) exploration program in the South Island of New Zealand.

The first three core wells, Bogle-1, Mt Linton-1 and Belmont-1 aim to evaluate the Beaumont formation coals previously encountered in the Goodwin-1 and Wairaki-1 wells.

The CSG drilling campaign will see up to a further four wells drilled this year, including stratigraphic wells which are designed to confirm the extent of the Beaumont coals in each of the Takitimu North and Longwoods coal trends.

The drilling campaign is designed to confirm the coal seam gas potential in the Company’s onshore Western Southland Basin permits, which initial analysis indicates may hold up to 300 PJ of CSG potential resources.

There are a number of commercialisation options being explored for any CSG that is discovered and discussions are ongoing with potential end-users for the gas.

Tags: L&M Petroleum Limited