L&M Energy upgrades Ohai reserves
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 incre
Nina Fowler
Tue, 26 Oct 2010
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.
“We expect further reserve upgrades when the rest of our acreage is taken into account giving us a tremendous opportunity to supply into what is a very buoyant energy market”.
The review and certification of 3P reserves was carried out by independent US-based consultants MHA Petroleum Consultants LLC, following results from recently completed step out well OM-4.
The increase in 3P reserves applies only to the Company’s Ohai permit area and does not include any of the potential gas resources from the adjoining Waiau permit.
Last month, the company successfully raised $1.4m, through a share purchase plan, to fund its Ohai coal seam gas pilot production facility. The drilling phase of the pilot project is due to commence this quarter.
L&M Energy (NZX: LME) shares last traded up 3.17% to 13c.
Nina Fowler
Tue, 26 Oct 2010
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