L&M starting Taranaki drilling programme

Friday 17th June 2011

L&M Energy is to start its Taranaki drilling programme with the spudding of an onshore well next Friday.

The Talon-1 well will be in a 482.4sq km permit area to the east of Eltham and Hawera, stretching inland from a length of coast near Patea.

L&M has a 50% interest in the permit, with the other half being bought by Canadian-based New Zealand Energy Corp (NZEC) from AGL Upstream Gas.

L&M has entered into a free carry agreement with NZEC for the well, meaning NZEC will pay the full cost of drilling Talon-1, subject to final documentation and regulatory consents.

The 1450m Talon-1 well was targeting mean reserves of two million barrels of oil in shallow Manutahi sands in a structure geologically identical to the adjacent Origin Energy-operated Manutahi Oil field which had estimated recoverable reserves of four million barrels, L&M said.

Talon-1 was the first well to be drilled in the 482.4km2 permit area, which contained further drilling targets.

NZPA

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