Petroleum Permits

PEP51151 (Alton) - 50%

Onshore Taranaki Basin.

Following the drilling of the Talon-1 well the Joint venture has committed to acquiring 50km2 of new 3D seismic over the northern part of the permit.

L&M Energy has entered into an agreement with Taranaki Joint Ventures II that will see TVII acquiring an additional 15% equity in the Permit by paying the full 100% costs of the seismic programme.

See: PEP51151 (Alton) Permit Brochure

PEP53247 (Kahili) - 25%

In 2011 the Joint Venture acquired over 30km of new high quality 2D seismic, reprocessed over 200 km of existing 2D seismic data, undertook a comprehensive geological and reservoir modelling study and have mapped an encouraging drilling target.

The Joint Venture has made the commitment to drill a new well in the Permit by the end of 2012 with the aim of generating significant cashflow within 12 months.

See: PEP53247 (Kahili) Permit Brochure

PEP52181 (Kaheru) - 15%

Kaheru lies on the prospective Eastern Margin trend of the Taranaki Basin and has existing 3D seismic coverage which includes the large Kaheru prospect.

The Kaheru Prospect lies immediately south of the proven Tarata Thrust trend. to the east of the Kupe Field (~300 BCF and ~30 MMBO) and is covered by a 3D seismic survey .

The Kaheru Structure has the potential to contain up to 290mmbbls of oil or up to 576bcf of gas with 29mmbbls of condensate, with multiple reservoir targets. The Permit also holds additional follow up prospects and leads.

See: PEP52181 (Kaheru) Permit Brochure