L&M abandons well

L&M Petroleum is plugging and abandoning its Sharpridge Creek-4 appraisal well in western Southland's Waiau Basin. The company said yesterday that after reaching a final total depth of 447m, oil and gas shows recorded in the well were found to be not commercially sufficient to justify development.

Results from the Sharpridge drilling programme would be integrated into the planning for the 2008 Waiau Basin drilling campaign scheduled for late in the second quarter, L&M said. A seismic acquisition programme to confirm several prospects for the campaign was now under way.

L&M Petroleum listed in New Zealand and Australia in January after raising A$20 million ($23.9 million) in an initial public offering of A20c shares. L&M shares were unchanged at 11c yesterday, having been as high as 37c in April.