Coal Seam Gas

Coal seam gas is a relatively new and developing source of natural gas worldwide. While sometimes viewed as unconventional gas, recent changes in the New Zealand energy scene, including the unexpected and early demise of the Maui field has increased interest in coal seam gas.

The potential of New Zealand's coals to yield coal seam gas has been understood for some time with the assessment of the resource beginning in the 1980's.

Seventy two percent of New Zealand's recoverable coal resources lie within the Southland region. L&M petroleum made their first significant coal seam gas find in Western Southland, near Ohai in September. While the signs look promising, it will be a further 2-3 years before they will know if they can start production.

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