Tuesday 30th September 2008
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Initial tests indicated the Morley coals samples contained up to 4.42 cubic metres of methane per metric ton of coal, were over-saturated with gas and had a low water content, managing director John Bay said in a statement.
"These results are very encouraging and are consistent with data from coal seam wells drilled in the adjacent Ohai permit," Bay said.
The samples will now go for more intensive analysis. The company is hoping to be able to show the Western Southland Basin has the reserve estimated at 300 petajoules.
Interest in coal-seam gas has been stoked by Australia's Origin Energy, which this week thwarted hostile suitor BG Group by agreeing to jointly develop its coal-seam gas assets in Queensland state with ConocoPhillips.
Shares of L&P fell 9.6% to 18 cents today and have soared 80% this year.
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