Wellington-headquartered L&M yesterday said it had temporarily suspended Fireball Creek-1 well, in licence PEP 38521 in the onshore Westland Basin, at 56m.
On Friday afternoon, high torque caused the drill string to twist off while drilling the dense Cobden limestone.
While L&M recovered the portion of drillstring left in the hole, the company has suspended drilling operations until the well can be inspected to make sure no damage has occurred and it is safe to continue drilling.
Managing director John Bay said the Fireball Creek shallow gas structure blew out in the nearby SFL-1 well drilled by Superior Oil in 1942.
"As a result of that blow-out, there is a chance that over-pressured shallow gas could be in any fractures encountered within the Cobden limestone section that we are currently drilling," Bay said.
L&M aims to drill Fireball Creek-1 to about 450m to test an Eocene-aged Omotumotu sandstone structure containing potential gas resources of up to 40 billion cubic feet.
The company farmed-in to the permit last November, taking over operatorship.
After the drilling of Fireball Creek-1, the PEP 38521 participants will be L&M Petroleum (operator, 32.5%), Pacrim Energy (35%), McKenzie Petroleum (8.125%), EF Durkee and Associates (8.125%), GRDC (8.125%), and Labrador Energy (8.125%).
