Coal-seam gas explorer L&M Petroleum - which is close to completing its second exploration test hole in Southland - has confirmed more onshore seismic testing will be undertaken early next year.
This week, L&M began drilling the second of seven test holes in Southland and, at 225m, had hit the top of a coal seam, planning to carry on to a depth of 400m.
Chief executive John Bay confirmed yesterday the company planned three separate onshore seismic programmes, worth $300,000, in Southland, the West Coast and Taranaki, during the first quarter of 2010, covering a total 100km of seismic work.
After this week's test well, the first phase of the 2009 drilling season will be completed, with work scheduled to resume in late September when the weather improves.
Its previous test hole, Mt Linton-2, went to 466m and uncovered about 8m of Beaumont coal, with cores from the well showing "evidence of high gas content", which had since been sent to Christchurch for analysis.
Mr Bay said it was likely to be several months before long-term gas-flow equipment was installed at the Mt Linton-2 site, probably in the fourth quarter of the year.
L&M is retaining $8.3 million to see it through all its planned work programmes until the end of 2010.
It listed in New Zealand in January 2007, raising $A20 million in a fully underwritten initial public offering.
