L&M Petroleum and Lindsay Clark - Explorer L&M Petroleum has located gas shows in its Fireball Creek-1 well in the onshore Westland Basin PEP 38521 south of Hokitika.
L&M Petroleum said the well has now been plugged and abandoned.
Petrophysical analysis of the electric logs obtained from the Fireball Creek-1 well, indicate that the top of the Omotumotu 'A' sands were at the gas/water contact. Based on this analysis, it is estimated that the Fireball Creek structure is likely to contain approximately 3.5 Bcf of dry gas in the Omotumotu 'A' sands.
Log analysis further indicates that the Omotumotu 'B' sands contain only water.
L&M Petroleum said the Fireball Creek structure is sub-economic under current conditions to develop as a stand-alone development.
In the event that future drilling of other nearby structural leads currently being evaluated by the joint venture proves to contain sufficient commercial reserves, the joint venture will reconsider development of Fireball Creek, the company said.
L&M Petroleum farmed in to the PEP 38521 earning 32.5% of equity as well as becoming operator.
Other partners in the joint venture are Twinza Oil Ltd 35% and four companies each holding 8.125% shares: McKenzie Petroleum Ltd, EF Durkee and Assoc, GRDC Inc and Labrador Energy Inc.
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