Project Profile
Value: Undisclosed
Location: Southland Coal
PEP38220 (Ohai) is one of two coal seam gas permits held within the Western Southland region of the South Island and is the current focus of L&M Energy\'s appraisal activities.
Prior to the grant of the permit to L&M, 40 gas and >350 coal exploration wells were drilled within the permit.
The company initially undertook a drilling programme to obtain a wide variety of base line data including coal quality, desorbed gas contents and fresh coal samples for adsorption and other CSG-related analyses. The results from this work showed that desorbed gas measurements indicated good gas contents within the sub-bituminous coals of the Ohai area. Comparison of the desorbed gas volumes with absorption isotherm results and filed observations indicate that the coal is saturated to slightly under-saturated.
A single-well multiphase testing programme was initiated within the permit in 2006. As part of this programme the production well OL-2 was drilled and completed for testing. The programme was successful. A further production well, OM-3 was drilled and completed in June 2009 so as to test the suitability of an open-hole completion method in the Morley coal measures and compare production results with earlier wells.
Operators:
L&M Energy Limited (LME): Operator with 100% interest