9th February, 2011
Ohai Coal Seam Gas Pilot Project Progress
L Energy Limited (LME) is pleased to provide the following update on drilling progress at the Ohai pilot project. The rig
is continuing operations at OM#5 and is at a current depth of 550m, which is within the upper section of the Morley coal
measures.
OM#5 will be drilled to a total depth of approximately 750 metres targeting the thick Morley 2 coal seam. Two horizontal
lateral wells will then be drilled to intersect OM#5 using proven directional drilling methods. Each of the lateral
wells will pass through approximately 700m of coal with the gas they produce to be extracted from OM#5.
The pilot project follows on from the company’s 3P reserves upgrade to 274 PJ and forms a key part of the Company’s 2P
gas reserves campaign which is aimed at independently certifying New Zealand’s first tranche of 2P CSG reserves.
ENDS