COMPANY ANNOUNCEMENT
22nd February 2012
L Energy to be fully funded for Alton 3D seismic survey
L Energy Limited (ASX: LME) advises that it has entered into a farmout agreement with New Zealand Energy Corp (“NZEC”)
whereby NZEC will earn a 15% interest in PEP 51151 (Alton), subject to Ministerial consents and other conditions, by
fully funding a regional 50km2 3D seismic survey across the permit.
Alton covers 482 km2 in the Taranaki Basin of New Zealand’s North Island. NZEC, acting as Operator of the Permit, has
proposed an exploration strategy to the Joint Venture based upon the acquisition of high quality 3D seismic targeting
well-defined, lower-risk Mt. Messenger targets coupled with deeper high reward exploration targets such as the Moki and
Kapuni formations.
Such a strategy has proven highly successful for NZEC in their adjacent exploration permit with the Copper Moki-1 and
Copper Moki-2 Mt. Messenger discoveries, producing oil at an average rate of 500 and 1000 barrels per day respectively.
The Copper Moki wells are located less than 4km from the Alton permit boundary while the commercial Cheal field,
operated by TAG Oil, is less than 8km from the boundary. The productive Mt Messenger, Moki and Kapuni formations in the
adjoining fields are believed to extend into the Alton permit with the additional 3D seismic survey expected to confirm
their presence and define multiple drilling prospects.
Currently NZEC holds 50% equity in Alton, and will earn an additional 15% equity by acquiring and processing a regional
3D seismic survey over approximately 50 km2 of Alton. Commenting on the deal, LME’s Managing Director Kent Anson said,
“This agreement allows LME to significantly de-risk a new exploration area at minimal cost whilst retaining a healthy
exposure to potential upside in the permit and reflects a growing interest in high quality exploration acreage such as
Alton. Considering the recent success in the adjoining area I see excellent potential for the Alton permit and look
forward to the completion of the detailed seismic campaign”.