Sharechat Logo

L&M Energy details changes to Alton permit

Thursday 2nd June 2011

Text too small?

L&M Energy (LME) says New Zealand Energy Corp (NZEC) will become the operator of a joint venture drilling the Talon-1 exploration well in onshore Taranaki permit area 51151, known as the Alton permit.

Vancouver-based NZEC is promoting New Zealand as "an island nation of energy opportunity" and raising money to pursue oil and gas exploration here.

It is acquiring AGL Energy's 50% interest in permit area 51151. LME said today it was retaining its 50% interest in 51151, but would transfer operatorship to NZEC.

LME has entered an agreement that gives it a free-carry for expenses incurred in drilling the Talon-1 well.

In the event of a discovery, the agreement provided for the funding of completion costs up to $500,000 with any costs beyond that shared 50:50.

The LME share of expenditure being funded under the agreement was approximately NZ$1.75 million, including $250,000 of the completion costs.

The agreement with NZEC is conditional upon due diligence, a final agreement with AGL and obtaining the New Zealand ministerial consents required.

A previous statement by NZEC said that L&M had waived a pre-emptive right to acquire the AGL interest in the Alton permit.

The Talon-1 well was expected to be drilled in the third quarter of this year.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

18th October 2021 Morning Report
T&G Global Limited (NZX: TGG) FY21 Earnings Guidance Update
Arvida Group Limited (NZX: ARV) Successful Completion of $155m Placement
FreshLeaf: Cannabis on course to be 'medicine of the masses'
Arvida Group Limited (NZX: ARV) to Acquire Arena Living Retirement Living Portfolio
My Food Bag Group Limited (NZX: MFB) Market Update and HY Results Announcement Date
Harmoney Corp Limited (NZX: HMY) Delivers Record September Quarter
Vital Healthcare Property Trust (NZX: VHP) Announces Successful Completion of $115m Placement
14th October 2021 Morning Report
General Capital Limited (NZX: GEN) Completes Greenfern Listing