L&M Energy keen to secure coal seam gas potential

L&M Energy keen to secure coal seam gas potential

The proposed acquisition (as previously announced) by L&M Energy of L&M Coal Seam Gas would create New Zealand’s largest, dual-focused coal seam gas and conventional petroleum exploration and development company, with 12 exploration permits across New Zealand and a market capitalisation of over NZ$100 million. The acquisition will be voted on by L&M Energy’s shareholders at a special general meeting scheduled for February 22 in Wellington.

In the build-up to the special general meeting, L&M Energy is holding a series of presentations around New Zealand to brief shareholders on the proposal. L&M Energy managing director John Bay and L&M Coal Seam Gas managing director Kent Anson will visit eight centres in New Zealand over four days (9 - 12 February) to summarise the key benefits of the proposed acquisition, and outline the proposed 2010 work programme.

The Company plans to run a similar briefing programme in Australia over the following week. Mr. Bay said the acquisition would see L&M Energy occupy the leading position in New Zealand’s emerging coal seam gas industry, which he says has significant potential based on international experience.

“The acquisition would enhance our portfolio mix and boost our presence in the coal seam sector. The Southland permit blocks of the two companies are complimentary, and would allow us to efficiently develop a significant new energy resource.”

L&M Coal Seam Gas holds six coal seam gas exploration permits, including the independently certified 173 PJ of 3P (proven, probable and possible) gas reserves in Southland. L&M Energy holds six petroleum permits, five of which are in the South Island. Mr. Bay said the new company would seek to enlarge its certified 3P coal seam gas reserves and certify maiden 2P reserves with a coordinated work programme across the adjoining permit areas.

Australian production of coal seam gas surged 39 percent last year to a record level and now represents more than 13 percent of gas supply in that country, according to the Australian Petroleum Production & Exploration Association. Mr. Bay is cautiously optimistic that coal seam gas offers similar potential on this side of the Tasman. 2

The schedule of New Zealand roadshows is:

Date/ City/ Venue/ Time

9th February Dunedin Speights Room, Southern Cross Hotel 118 High Street Dunedin 10.00am

9th February Gore Offices of Craig Investment Partners 120 Main Street Gore 2.00pm

9th February Invercargill Mararoa Room, Ascot Park Hotel Corner Tay Street & Racecourse Road Invercargill 5.00pm

10th February Queenstown Millennium Hotel Corner Frankton Road & Stanley Street Queenstown 10.00am

10th February Christchurch Novotel Hotel 50 Cathedral Square Christchurch 4.00pm

11th February Hastings The Barrel Room,Vidal’s Winery 913 Aubyn Street East Hastings 10am

11th February Auckland The O’Connell Room, Level 2 23 O’Connell Street Auckland CBD 4.30pm

12th February Wellington Lambton 3 Room, Level 2 114 The Terrace Wellington 9.00am

ENDS

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