Coal seam gas explorer L&M Energy has booked a $9.7 million loss for the six months to June, but successful capital raising of $10 million recently has positioned it well to continue its southern exploration.
Total costs of $11.8 million during the period included a non-cash stock option cost of $7.1 million, to acquire private sister company L&M Coal Seam Gas Ltd, $2.6 million in exploration, and staff and overheads of $1.2 million, managing director John Bay said.
"The acquisition of L&M Coal Seam Gas Ltd and subsequent work on progressing its activities may result in the generation of early cashflow for the company," Mr Bay said in a statement.
L&M Energy, which values its permits at $21.5 million, has $1.4 million in cash and cash equivalents in hand.
It has been estimated that listed L&M and former subsidiaries have spent about $30 million in recent years on coal seam gas exploration.
Most of the $10 million raised is to be used for southern exploration, including about $2 million for a pilot production project at Ohai which began last month.
