Mt linton-2 Well Encounters Top of Beaumont Coals

COMPANY ANNOUNCEMENT

For Immediate Release Tuesday, 7 July 2009

Mt Linton-2 Well Encounters Top of Beaumont Coals Highlights

Mt Linton-2 well has encountered the top of the Beaumont coals at 359m • Once coring operations have been completed the coals will be flow tested to establish permeability.

At report time, the Mt Linton-2 well in LMP’s Western Southland Basin petroleum exploration permit, PEP 38226 (Waiau), is rigging up flow test equipment after encountering the top of the Beaumont formation coals at 359m. Cores taken from Beaumont coals will be sent to CRL in Christchurch for full laboratory analysis. Once the necessary equipment is installed in the well a flow test will be undertaken to establish the permeability of the Beaumont coals in the Mt Linton area.

The Mt Linton well is being drilled to appraise the Beaumont formation coals encountered previously in the Sharpridge Creek-1 well drilled by the Company in 2006, which flowed gas to surface under a DST conducted upon the well. Upon completion of the coring and testing operations in the Mt Linton-2 well, the Washington’s core rig #4 will be shifted to drill the Belmont Strat-1 well in the adjoining PEP 38230 (Blackmount) permit.

The Company has programmed to drill up to seven coal seam gas test wells in 2009 to confirm the coal seam gas potential in the Company’s onshore Western Southland Basin permits. Initial analysis indicates that LMP’s permits may hold up to 300 PJ of CSG potential resources.

ENDS

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