Next Well in CSG Program Begins Drilling

COMPANY ANNOUNCEMENT
For Immediate Release
Monday, 27 July 2009

Next Well in CSG Exploration Program Begins Drilling Operations

Highlights

• Mt Linton-2 well was suspended pending future testing after encountering 6.8m of Beaumont coals beginning at 359m.

• Belmont Strat-1 well drilling operations commenced.

The Belmont Strat-1 well in LMP’s Western Southland Basin petroleum exploration permit, PEP 38228 (Blackmount), commenced drilling operations over the weekend and at report time this morning was waiting on cement after setting 6” casing at 42m. The Belmont Strat-1 well is programmed to drill to a depth of 400m to further appraise the Beaumont coals in the permit area.

The drilling operations are expected to take about one week to complete.

Prior to shifting the Washington’s drill rig to the Belmont Strat-1 site, the Mt Linton-2 well was suspended pending future flow testing of the 6.8m of Beaumont formation coals encountered in well from 359m.

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

See... Full release with maps (PDF)

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