L&M optimistic about gas prospects

Listed energy company L&M Petroleum hopes to find commercial amounts of gas at an onshore well south of Greymouth, which it is exploring as part of a consortium.

Under farm-in arrangements, L&M will be appointed operator at the Westland Basin's Fireball Creek prospect with a 32.5 per cent stake, in exchange for funding 65 per cent of the cost to drill a 450m well.

Permit owner, Brisbane-based Pacrim Energy, said two years ago the permit had exciting gas prospects.