LMP, L & M PETROLEUM LIMITED

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L&M Petroleum Limited (ASX and NZX: "LMP") wishes to advise that it is commencing discussions with privately held L&M Coal Seam Gas Limited ("LMCSG") with respect to the acquisition of part, or all of the LMCSG corporate entity or asset base.
LMCSG is New Zealand’s largest individual coal seam gas permit holder and holds a diverse portfolio of projects across the North and South islands of New Zealand. LMCSG is currently conducting exploration and production testing activities across its permit base that aims to delineate a resource in excess of 1500PJ of coal seam gas.
Certification of coal seam gas reserves is underway within the LMCSG’s PEP 38220 (Ohai) permit, in the Western Southland Basin, northwest of Invercargill on the South Island. LMP’s PEP 38226 (Waiau) permit, which contains the Otahu deep gas prospect and the Takitimu South Coal Seam Gas Trend that has been the focus of the Company’s recent CSG exploration drilling program, is adjacent to LMCSG’s Ohai permit (see map).
Due to cross shareholdings between LMP and LMCSG, a committee comprising the independent Directors of the Board has been established to continue discussions with respect to this acquisition. LMP reiterates that these discussions are incomplete in nature and the Company will continue to comply with its continuous disclosure obligations.

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Company:
L & M PETROLEUM LIMITED

Code:
LMP

Website
http://www.lmpetroleum.net.nz/