Goodwin-1 Well Hits Coal Seam Target

Goodwin-1 Well Hits Coal Seam Target

At 07:00 on 15 September the Goodwin-1 well was at a depth of 296m, coring in the Morley Formation, the top of which was encountered at a depth of 254m. This was slightly deeper than predicted due to an increased thickness of Beaumont Formation caused by shallow faulting. The main target of the well, the Linton Main Seam coal was encountered at a depth of 272m, with a further subsidiary seam at 282m. The total net coal was 9.2m in thickness, 50% more than predicted.

14 canisters of coal were collected with little loss, and the pressure gauges all produced positive gas results, with no observable pressure decline. The cores will be sent away for further laboratory analysis, including gas desorption. The well will continue coring through the predicted secondary coal, the Morley #2 Seam, which is expected at approximately 320m. The revised total well depth of the well is now 360m.

John Bay, LMP MD and CEO said, "This is a great result all round for our first CSG well. First we found the Beaumont to be thicker, which meant the Morley could be expected to come in deeper than the 200m that was originally predicted. This is important for CSG. The economic window for CSG is only for coals between 200m and about 1000m, so we did have some concerns about the original prediction that the Morley would come in right at the very top of the window.

"Now, on top of finding the Morley at a better depth, the first seam has come in 50% thicker, and according to the field geologist, the cores were 'fizzing with gas'. We'll have to wait for the formal lab analysis to be completed to know what we have for sure, but we are certainly excited about what we have seen so far."

The Goodwin-1 well, located in the eastern portion of petroleum exploration permit (PEP) 38226 (Waiau) adjacent to the proven Ohai coalfield (see map), is the first of three wells to be drilled in the Company's 2008 coal seam gas (CSG) exploration program in the South Island of NZ, which is targeting up to 300 PJ of coal seam gas resources.

LMP plans to drill up to eight wells in 2008 to help confirm the extent of the coal seam gas potential resources contained within its permits. The Company's initial analysis indicates its onshore Western Southland Basin permits may hold up to 300 PJ of CSG potential resources.

ENDS

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