The offer by its chairman and creditor Geoff Loudon is now unconditional.

It needs to reach 90% to declare the offer unconditional.

Geoff Loudon makes full takeover bid for the Wellington-based oil and gas explorer at a 45% premium to its last trading price.

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.

L&M Energy (LME) shares leapt 12.5% today after confirmation of gas content at the OM-4 well in Southland.

Results from previous drilling show that the well contains coals fully saturated with gas, equivalent to up to 11 cubic metres of gas per tonne of coal.

The gas’ composition is described as excellent, with methane content at 97-99%.

LME managing director Kent Anson said the results confirm the company’s expectations of the prospect, and support the existence of additional gassy coals in the company’s adjacent Waiau permit.