COMPANY ANNOUNCEMENT
5th July, 2011
L&M Energy Spudding Talon‐1 Well

L&M Energy Limited (ASX/NZX: LME) is pleased to advise that Talon‐1, the Company’s first well in the Taranaki Basin, will spud this evening following finalisation of rig set up operations.

Talon‐1 is the first well to be drilled on the 482.4km2 permit, which also contains multiple further drilling targets.

The 1450m Talon‐1 well is targeting mean reserves of 2mmbbl oil (recoverable) in shallow Manutahi sands in a structure geologically identical to the adjacent Manutahi Oil field operated by Origin Energy (estimated recoverable reserves of 4mmbbl).

As announced on 1st June, LME will be free carried through the drilling of the well (subject to third party final documentation and regulatory consents).

ENDS

Full release with map: July_5_Talon_spud.pdf