The deal for a half-share will help get Toronto-based NZEC out of a financial hole.
L&M Energy, with interests in oil and gas exploration permits in Taranaki, iwants to boost liquidity as it bids for new blocks and accelerates its drilling programme.
L&M Energy shares have jumped following a 60% upgrade to proved, probable and possible (3P) gas reserves at its Ohai field in Southland.
The 3P Ohai reserves estimate was today upgraded to 274 petajoules, up from 174 petajoules.
“The reserve increase is another significant step forward for the company in developing the South Island’s first commercial gas field,” L&M Energy managing director Kent Anson said today.