LMCSG Acquisition Complete

LMCSG Acquisition Complete

L&M Energy Limited (LME) is pleased to announce the successful completion of its acquisition of L&M Coal Seam Gas Limited (LMCSG).

The necessary shareholder approvals for the acquisition were obtained at a Special General Meeting of LME shareholders held on 22 February 2010. LME advises that all other necessary matters required for the completion of the acquisition have now been finalised.

L&M Energy chairman Geoff Loudon said the deal was well worth the wait.

“We believe that this transaction is a great result for shareholders in significantly improving the quality and size of the Company’s coal seam gas asset”.

Mr Loudon noted that the success of coal seam gas in Australia shows that resource aggregation offers many more commercialisation options for coal seam gas developments.

“The increased asset base this acquisition brings us better enables the Company to maximise the value potential for any coal seam gas developed. Couple this with the fact that New Zealand is facing a future gas supply shortfall and the Company should be well placed to provide valuable energy for the nation, when it needs it most.”

Mr. Loudon welcomed new staff to the Company and thanked the corporate advisors who worked on the deal.

“We welcome Kent Anson and his team to the Company and would like especially to thank the Company’s Managing Director, John Bay, and CFO, Bruce McGregor, for their efforts to bringing the deal to fruition.”

“We would also like to thank our corporate advisors Adelaide Equity Partners; our legal advisors Kensington Swan in New Zealand and Piper Alderman in Australia, and the independent experts, Ernst & Young Transaction Advisory Services and MHA Petroleum Consultants, for their assistance in the acquisition.”

ENDS

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