Shale Gas

Unconventional Exploration: Shale Gas

Shale gas is natural gas trapped within fine grained organic-rich sedimentary rocks called shales.

The gas comes from organic material that was deposited with muds forming black shale, which over geological time and burial to depths of up to 4,500m matures to produce gas. The shale formation acts as both the source of the gas and the reservoir holding the gas.

In the southern hemisphere exploration companies in Australia have recently demonstrated the potential for shale gas in a number of basins. Similar conditions for shale formation existed in New Zealand at the time of the formation of such Australian shales.

Whilst shales can be very extensive and hold large amounts of gas, the rocks have extremely low permeability and require specialised techniques to liberate the gas. In the USA recent advancements in horizontal drilling and hydraulic fracturing have lowered the cost of production and increased reserves very rapidly, such that shale gas is now a major contributor to USA gas reserves.

L&M Energy Shale Gas Opportunities

LME has identified five areas throughout the South Island with excellent shale gas potential. LME holds two permits in the Waiau Basin in Western Southland, covering 616 km2.

LME is seeking to increase total land holding to 25,663 km2 via five additional permit applications.

LME has generated an extensive geological database on identified areas which have assisted in the identification of multiple opportunities.

Available data indicates the potential gas in place resources across all permits could exceed 5 trillion cubic feet (tcf).