L&M: Tests confirm potential of Goodwin-1 gas

Jan. 14 – L&M Petroleum Ltd., the exploration company seeking to commercialise coal-seam gas from its permit areas in Southland, said extended laboratory tests of coal samples from its Goodwin-1 well confirmed the presence of gas.

Tests showed coals in the Goodwin-1 well contain up to 4.4 cubic metres of methane per metric ton, the company said in a statement. The tests indicate between 78% and 98% of the gas-in-place is potentially recoverable, it said.

The company is awaiting tests in the next few weeks of samples from a second well in the vicinity, Wairaki-1, it said.

Shares of L&P rose 6.3% to 8.5% and have dropped 20% in the past 12 months. The shares climbed as high as 23 cents in June last year after the soaring price of crude oil stoked demand for fuel sources and takeover activity in Australia lifted valuations of copal gas resources.

(Businesswire)

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