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Commercialising Coal Seam Gas in SouthlandDr. Chris McKeownBusiness Development ManagerNew Zealand Petroleum Conference20t...
Corporate snapshot <br />* 	440 million shares unlisted (escrowed until 26 Feb 2011)<br />* 	Significant Shareholders: 	Ge...
Corporate history<br />
Conventional oil and gas permits<br />CSG Permits<br />Conventional Permits<br />Conventional + CSG Permits<br />
Coal Seam Gas (CSG) permits<br />CSG Permits<br />Conventional Permits<br />Conventional + CSG Permits<br />
Why the need to explore?<br />
What is coal seam gas?<br />
How to produce coal seam gas?<br />
What are the key properties? <br />
Source: Schlumberger Australia Pty Ltd.<br />Sounds easy; why has no-one done it here?<br />
So what is happening now?<br />
Source: Oil and Gas Equity Market Risk through the last 5 year commodity price cycle<br />Chris Newton and Tom Soulsby, pr...
Otahu<br />Gas Prospect<br />L&M Energy: Southland (Ohai) CSG Play<br />
Previous Ohai CSG Activities<br />
L&MCSG – Ohai CSG drilling results<br />Production testing Ohai – 1995 Southgas<br />
Recent Ohai CSG Activities<br />
How does Ohai CSG play compare?<br />
Currently planning Ohai CSG pilot<br />
Quad lateral completion example<br />
Where is the market for the gas?<br />
Source: Energy Data File 2010<br />Favourable gas pricing<br />
Strong electricity pricing in S. Island<br />
CityPopulation<br />Christchurch	360,000<br />Dunedin 		115,000<br />Invercargill 	  48,000<br />Nelson 		  45,000<br />Bl...
The Kenworth T800, equipped with a Cummins ISX and Westport's HPDI  fuel system, offers an industry-leading solution with ...
Agreement signed with HW Richardson<br />
ESTIMATED SOUTH ISLAND GAS PRICING<br />$50<br />*<br />$45<br />$40<br />$35<br />$30<br />NZ$ per GJ<br />$25<br />$20<b...
Next steps for CSG<br />Production testing Ohai – 1995 Southgas<br />
Summary<br />CSG Permits<br />Conventional Permits<br />Conventional + CSG Permits<br />
This presentation has been provided for the sole purpose of providing preliminary background financial and other informati...
Commercialising Coal Seam Gas in the South Island of New Zealand
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Commercialising Coal Seam Gas in the South Island of New Zealand

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Presentation outlining the steps L&amp;M Energy is taking to commercialise New Zealand\'s first certified Coal Seam Gas (CSG) reserves

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Commercialising Coal Seam Gas in the South Island of New Zealand

  1. 1. Commercialising Coal Seam Gas in SouthlandDr. Chris McKeownBusiness Development ManagerNew Zealand Petroleum Conference20th September 2010<br />
  2. 2. Corporate snapshot <br />* 440 million shares unlisted (escrowed until 26 Feb 2011)<br />* Significant Shareholders: Geoff Loudon 24.5%<br /> Campania Holdings Inc 24.5%<br /> Tangent International Ltd 24.5%<br />** Options have exercise dates up to 2015 and exercise prices up to A$0.30)<br />
  3. 3. Corporate history<br />
  4. 4. Conventional oil and gas permits<br />CSG Permits<br />Conventional Permits<br />Conventional + CSG Permits<br />
  5. 5. Coal Seam Gas (CSG) permits<br />CSG Permits<br />Conventional Permits<br />Conventional + CSG Permits<br />
  6. 6. Why the need to explore?<br />
  7. 7. What is coal seam gas?<br />
  8. 8. How to produce coal seam gas?<br />
  9. 9. What are the key properties? <br />
  10. 10. Source: Schlumberger Australia Pty Ltd.<br />Sounds easy; why has no-one done it here?<br />
  11. 11. So what is happening now?<br />
  12. 12. Source: Oil and Gas Equity Market Risk through the last 5 year commodity price cycle<br />Chris Newton and Tom Soulsby, prepared for the 2009 Seapex Conference<br />How big could it get? <br />
  13. 13. Otahu<br />Gas Prospect<br />L&M Energy: Southland (Ohai) CSG Play<br />
  14. 14. Previous Ohai CSG Activities<br />
  15. 15. L&MCSG – Ohai CSG drilling results<br />Production testing Ohai – 1995 Southgas<br />
  16. 16. Recent Ohai CSG Activities<br />
  17. 17. How does Ohai CSG play compare?<br />
  18. 18. Currently planning Ohai CSG pilot<br />
  19. 19. Quad lateral completion example<br />
  20. 20. Where is the market for the gas?<br />
  21. 21. Source: Energy Data File 2010<br />Favourable gas pricing<br />
  22. 22. Strong electricity pricing in S. Island<br />
  23. 23. CityPopulation<br />Christchurch 360,000<br />Dunedin 115,000<br />Invercargill 48,000<br />Nelson 45,000<br />Blenheim 35,000 <br />Queenstown 11,000<br /> Total 614,000 <br />Ohai<br />Reticulation<br />
  24. 24. The Kenworth T800, equipped with a Cummins ISX and Westport's HPDI fuel system, offers an industry-leading solution with world-class low emissions and greenhouse gases, while delivering outstanding horsepower, torque, and efficiency comparable to a diesel engine. <br />Boutique LNG<br />
  25. 25. Agreement signed with HW Richardson<br />
  26. 26. ESTIMATED SOUTH ISLAND GAS PRICING<br />$50<br />*<br />$45<br />$40<br />$35<br />$30<br />NZ$ per GJ<br />$25<br />$20<br />$15<br />$10<br />$5<br />$0<br />Petrochem<br />Onsite<br />Reticulation<br />Transport<br />Bottle<br />Production<br />Power gen<br />Sector<br />LPG<br />*net of delivery costs<br />Favourable pricing for gas offtake options <br />
  27. 27. Next steps for CSG<br />Production testing Ohai – 1995 Southgas<br />
  28. 28. Summary<br />CSG Permits<br />Conventional Permits<br />Conventional + CSG Permits<br />
  29. 29. This presentation has been provided for the sole purpose of providing preliminary background financial and other information to enable investors to review the business activities of the Company.<br />This presentation contains interpretations and forward looking statements that are subject to risk factors associated with the oil and gas industry.<br />It is believed that the expectations reflected in the presentation are reasonable but may be affected by a variety of variables and changes in underlying assumptions which could cause actual results to differ substantially from the statements made. This includes but is not limited to: production fluctuations, commodity price fluctuations, variations to drilling, well testing and production results, reserve estimates, loss of market, industry competition, environmental risk, physical risks, legislation, loss of mineral lease tenure, fiscal and regulatory developments, economic and financial market conditions, project delay or advancement, approvals and cost estimates.<br />Investors should undertake their own analysis and obtain independent advice before investing in L&M Energy shares.<br />All references to dollars ($) are in Australian dollar unless otherwise stated.<br />The Company and its Directors, agents, officers or employees do not make any representation or warranty, express or implied, as to endorsement of the accuracy or completeness of any information, statement representations or forecasts contained in this presentation and they do not accept any liability for any statement made in, or omitted from, this presentation.<br />Disclaimer<br />

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