great south basin seeps oil

[Shrewd Crude]

OIL FOUND SEEPING OFF STEWART ISLAND
An earthquake has raised hopes of discovering oil in the Great south Basin off stewart Island..
Natural oil seeps have been found in the area which are believed to be related to a magnitude 4.8 quake that was located 160 kms off stewart island on Feb 19th
The ministry of Economic Development says the seep has considerable significane as it means oil, and not just gas, is being generated....
quoted news talk ZB
further I add, currently crown minerals has 40 blocks up for tender in the Great South Basin.... we will find out who gets the blocks within the next few months....
the GSB has been described as "could be one of the worlds biggest oil fields"
(I shart you not)....

LM petroleum has permits down there.... could be a stock to watch over the next few years... will get great exposure as a big oiler will come in and drill here....
[8D]
.^sc

[kizame]

This has been around for years,if you can get a hold of a document called the Opal File,it will reveal heaps about the potential of the GSB.I know of someone whom worked for Shell BP Todd in Taranaki and he said he had definately heard some years ago about The Reserves down there,but it was left alone because of the costs of extraction,whereas now look at the price of oil.

And yes apparently it is the largest field in the world.

[Steve]

quote:Originally posted by kizame

This has been around for years,if you can get a hold of a document called the Opal File,it will reveal heaps about the potential of the GSB.I know of someone whom worked for Shell BP Todd in Taranaki and he said he had definately heard some years ago about The Reserves down there,but it was left alone because of the costs of extraction,whereas now look at the price of oil.

And yes apparently it is the largest field in the world.

Should we be expecting the Americans to come and 'liberate' our fair country any time soon?

[zorba]

.
Roll out the barrel, me ol' maties, an' splice the main brace me ol' hearties

Thar's oil in dem deep southern basins !!!

http://www.crownminerals.govt.nz/news/news.asp?newsID=1173662254

[Shrewd Crude]

Steve, Yeah I think one large American oiler maybe two will get all the 40 permits and go drill crazy later this year, early next....

Kizame I knew of the potential GSB had.... I never knew that GSB had oil pools on the surface....
bursting at the seams....

I read awhile back that a drill in the GSB costs 750k per day....
so no juniors can drill there...

I would rather give the permits to a consortium of ASX mid caps
who are committed to multi drill programs....
the yanks will ride us to the banks!....
imagine it, one day NZ could be a net exporter of Oil....
[8D]
.^sc

[CJ]

quote:the yanks will ride us to the banks!....
imagine it, one day NZ could be a net exporter of Oil....
[8D]This could be great if there is that much oil. The government could tax it (like Saudi/ UAE) and we could start building palm islands in the bay of islands.

[Oceanbeach1]

Reference to Opal File.

www.theantechamber.net/XContent/OpalFile.htm

[rev]

Hell...

It sends shivers down my spine that bit about Fletchers having a monopoly in wire rod...those naughty Fletchers

[bermuda]

JoeKing.
Oil is lighter than water and seeps will rise to the surface.New earthquakes will disturb oil that is contained below surface and it consequently will escape and rise.
The permits that L&M are exploring in the South-west of the south Island are geologically linked to Taranaki.Apparently there was a huge shear that over time resulted in these two basins being separated
and L&M are confident that they have some "Elephants" to hunt for ONSHORE as well as offshore.That's why I bought some during the float because there is oil down there and perhaps their seismic will find some prolific reservoirs.
We will have to wait and see.One thing is for sure.It will take a very robust dome to retain oil given NZ's exposure to earthquakes but only the drill will tell.
Here's hoping.
p.s. What a concocted file that Opal is!!

[bermuda]

Delete message

[shane_m]

mate Bluff and STEWART Island will get build up like Dubai if this goes through...

[redzone]

I wonder how long before the greenies are down there with booms etc to try and mop it up.....cant have oil slicks can we ...cleen and green aswe are

[Sharp737]

I remember one of those wells down there in the 80's I think had a big strike BUT guess what??? There apparently was an 'accident' where the concrete was dropped by 'accident' down the hole before flow testing could take place.....

I will try and find the link to this information but when I found that out, I was sorely surprised. Apparently back in the 80's when the Marsden Refinery JVII was doing the expansion, some blokes were saying then and were adamant that "there was oil down there" as they were on the rigs. Interesting eh.

Sharp

[arjay]

The GSB is a big place, remember those mega-barrels SouthernPet went after. And how about all those oil seeps around Lake Brunner that NZO never found the source of - not to mention that announcement prior to drilling about the oil-saturated plugs founf above the Hochstetter drill site. Needle in a haystack?

[zigzag]

Anyone want to apply for a prospecting permit in GreyLynn. I have found numerous oil shows on my driveway. I suspect there must be some serious oil seeps somewhere close at hand.

[arjay]

I will seriously consider investing in anything old and British. Hillman-1 and Vauxhall-1 are bound to be gushers.

[JBmurc]

-Get those LMP shares while there cheap free 2:1 ops 11 april

-Only the other day I was talking to a guy who was working for Hunt back in the day they were drilling GSB,On what he'd seen-eg massive gas flares,flat sea round the rigs from oil pressure leaks.I'll be supprised if a couple big boys(EXXON,shell,BP) don't buy up the permits(I'd rather see STO,WPL,BHP or some other ASX'er get involved)
-Unlikely southland would get much $$$$ in the short term more than likely they'll be plugged and put on the reserves.

-JBmurc-Holds-160,000-LMP-asx 80,000 free ops;)

[Shrewd Crude]

quote:zigzag-Anyone want to apply for a prospecting permit in GreyLynn. I have found numerous oil shows on my driveway. I suspect there must be some serious oil seeps somewhere close at hand.
Zigzag... are you sure your car aint a lemon?....hehe...if not....
imagine it.... A drilling campaign going hard the back yard....
a definate way to subsidise current low rental incomes....


JBM.... i couldnt agree more....
LMP looking good over the next period....
need to see some more farm in partners....
who are prepared to pay for drilling costs and free ride LMP all the way....
could one day become the premier NZX listed pure oil play for sure....
we both agree that the permits ShOuLd go to ASX oilers.... but wont....

The large oilers that come to explore... drill... and no doubt develop the GSB should be made to Publicly list a company which we can all invest in....
Its our Oil, we should be able to profit from our animal GSB reserves (note, unproven world class reserves)
[8D]
.^sc

[zigzag]

Is LMP's offshore permit actually part of what is known as GSB? It lies to the south of Fiordland and west of Stuart Island, and is referred to as the Solander Basin. The oil seeps were on the other side of Stewart Island and I was under the impression that the GSB was more to the south and east in deeper water. Bermuda said that long ago the LMP areas were part of the Taranaki basin. I think, and correct me if I am wrong, that the GSB is a different system. But still, increasing interest in the area is a positive for LMP. On a lighter note; with a name like LMP you'd expect them to be drilling in Paeroa.

[kizame]

LMP do have a well in paeroa,that has since ceased to produce,the large brown drilling rig is still there to this day.

[JBmurc]

Have look here-Zigzag- for NZ different petroleam basins
there looks to be a good 150km between the two basins

http://www.crownminerals.govt.nz/petroleum/index.asp

As for LMP on asx-last trade 23c could see it go as high as 25c before options ex. date ,been talking to alot of guys looking to buy
Glad i brought the other day at 21-21.5 for my 160,000
-As for farm-in partners I'd say as soon as LMP hits pay dirt they'll be swamped by ASX oilers wanting to farm-in(free-ride in the costly offshore solander basin drilling[?][?])

-

[JBmurc]

West Southland basins


Key facts
Where: A region on and offshore of the far south of the South Island.

Geology: Up to 9 km of Cretaceous to Quaternary fill in several basins with a total area of about 20,000 sq km. Key stratigraphic units similar to Taranaki Basin.

Wells drilled: Four deep modern wells drilled, two of them offshore.

Industry infrastructure: Nearest city and port at Invercargill.

Prospects: Gas seeps, degraded oil outcrop onshore. Numerous structural and stratigraphic leads.

Potential source rocks: Cretaceous to Eocene coal measures and interbedded oil shales and carbonaceous mudstones. Source rocks more oil prone than Taranaki.

Potential reservoir rocks: Cretaceous to Eocene terrestrial and shallow marine sandstones, Oligocene marginal marine and deep water sandstones and Miocene sandstones.


;)

[Sharp737]

Check out the latest Investigate Magazine.....Headlines of "NZ's Oil BOOM - Sheikh Shadbolt, the Hunt Brothers, the secret oil strike, and NZ's trillion dollar oil reserves".

Not bad reading and confirms what I have been told and looked up

Sharp

[Shrewd Crude]

cheers sharp for that!

heres an article from the chch press.....
<center>L and M looks at options for vapour</center>
CHCH mining company L and M Group has discovered commercial quatities of gas trapped in coal seams, most in Southland and Otago....
L and M group managing director Greg Hogan said the company was now examining options for use of the gas....
The company, owned by private offshore investors including Geoff Loudon, an Australian who developed the Billion Dollar Lihir gold mine, had been working its way over a few years through 13 permits areas in southland, Otage and waikato exploring for and accessing the production potential of coal seam gas....
"we believe we have at least 5 areas where that will be possible",Hogan said....
The five permit areas are near Winton and Ohai in Southland, at Kaitangata south of Dunedin and Hawkdun west of Dunedin and in north Waikato....
Hogan said the company was completing economic and technical studies.....
We are still evaluating but we are optimistic at this stage that all five will prove commercial.....
In total L and M Group assessed there was up to 300 PETAJOULES OF GAS IN THE FIVE PERMIT AREAS. coal seam gas had not been commerically produced in NZ, though it is being produced in Australia and was well established in the USA.....
Hogan said coal seam gas could be used to fire small new power station near the coal seam gas source or could be piped to a site for industrial use or compressed on site and shipped to other places for use. It was a new and developing source of natural gas.....
Hogan said L and M expected to have a pilot production plant running b4 the end of this year but was still discussing where it would be. He said he would like to see commerical extraction and production of the gas from coal seams at Huntly.....
Chief executive Don Elder said it was extracting small quantities of gas from coal but they were too small to be economic.....

Market reaction SP down on ASX by 6.5% to 21.5cents
NZX SP up 4% to 26cents....
best bet would be to get them cheap on the ASX.....
[8D]
.^sc

[Chippie]

correct me if I am wrong but L&M Group is a private co and owns the coal seam gas. This should not be confused with L&M Petroleum (LMP) listed on the NZX.

[Sharp737]

Here's the link on the Toroa prospect by Magellan. You'll see the comments I referred to earliear about the well being filled with concrete.

http://www.magpet.com.au/magpet/pdf_files/2004_03_29/nz_permitsummary.pdf

Pretty interesting stuff

Sharp

[COLIN]

quote:Originally posted by Sharp737

Here's the link on the Toroa prospect by Magellan. You'll see the comments I referred to earliear about the well being filled with concrete.

http://www.magpet.com.au/magpet/pdf_files/2004_03_29/nz_permitsummary.pdf

Pretty interesting stuff

Sharp


Phew!! 6,000 foot column of solid cement!!!

[Shrewd Crude]

quote:Chippie-correct me if I am wrong but L&M Group is a private co and owns the coal seam gas. This should not be confused with L&M Petroleum (LMP) listed on the NZX.

Chippie you are quite right... L and M group spun off 5 of its permits by floating L and M petroleum....
L and M group have more than 20 permits of on and offshore permits in Southland...



quote: Simon Hartley-ODT
"L&M also operates divisions L&M Coal Seam Gas Ltd and L&M Coal Ltd, the latter of which is forecasting that a 12 billion tonne lignite resource in Otago and Southland could produce 50,000 barrels of diesel annually for up to 25 years from "coal gasification".

"A $6 billion petrochemical plant could be operating by 2012 on the lignite fields, estimated to hold the equivalent of 30-40 Maui gas fields."

"Tenders for potential exploration drilling in 40 blocks within the Great South Basin, a highly anticipated programme that could define the country's exploration future, opened by government agency Crown Minerals and is open until February"


With 40 block tendership closed, its not long until we find out who will get OUR permits...
It sure would be interesting if L and M coal, L and M coal seam gas, ever get public listings....
I'd be keen to invest into GSB, But I dont want exposure in the super large oilers other prospects... I would only want exposure in GSB!
[8D]
.^sc

[JBmurc]

Can't see L&M in the GSB but if they do well onshore we could see them drill offshore in the solander basin est. 150kms west of the GSB which could hold massive reserves as well-
-Best chance to invest in the GSB is IMHO going be in a farm-in partner like STO,OSH,WPL with a bigboy like BP,Shell,EXXonmobil,petrolchina etc

[Shrewd Crude]

well what I said about LMP was a flop,
But LMP still have a big future, just on a delayed schedule...
I sold out of LMPO up, and LMP even after it ran a bagger plus... I hope to re-enter in time as this is still a premium leveraged New Zealand oil and Gas play...

on another note,
A Consortium of Oil majors picked up GSB permits last year, and the first one to come in, Exxon have until 10th of October to commit to a well in the Great South Basin, (or lose it)....they recently came out and said they will announce well before that, and I am expecting them to drop a well next Summer...December time when the winds and swells are lower...
Apparently the cost to drill one of these 'oh daddas', is in the vasinity of 100 million dollars to complete...
that is unbelieveable...

This is big....
The Great South Basin, New Zealand is in the top 10 most prospective exploration regions in the World...
I will tell you why next week...
:cool:
.^sc

[whatsup]

So just who are the potentional drillers here ?