Fireball Creek-1 Drilling Progress Report

Fireball Creek-1 Drilling Progress Report

As at 0600 hours the well was at a depth of 125m drilling ahead at a rate of 3m per hour.

The loss of drilling fluids that was being experienced was able to be cured by placing a small cement plug across the lost circulation zone. As a result, an additional protective casing will not be required to be installed in the well and drilling will continue to the programmed intermediate casing depth of 195m, which is expected to be reached by the weekend.

The well, located within Petroleum Exploration Permit (PEP) 38521 in the onshore WestlandBasinof the South Island of New Zealand, is programmed to drill to a total depth of 450m to test an Omotumotu Sandstone structure containing potential gas resources of up to 40 Bcf.

LMP has entered into a farmin agreement with several of the PEP 38521 Joint Venture parties under the terms of which LMP will earn 32.5% equity in PEP 38521 and become Operator to the joint venture by funding a portion of the cost to drill the Fireball Creek-1 well.

Post drilling of the Fireball Creek-1 well, the PEP 38521 Joint Venture parties will be:

• L&M Petroleum Ltd (Operator) 32.500%


• Twinza Oil Ltd 35.000%


• McKenzie Petroleum Ltd 8.125%


• EF Durkee and Assoc 8.125%


• GRDC Inc 8.125%


• LabradorEnergy Inc 8.125%

ENDS

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