L&M Petroleum Limited

L&M Petroleum Limited (NZE:LMP)(PINK:LMPDF) is pleased to announce that drilling operations are set to commence in the Company's petroleum exploration permits, PEP 38226 (Waiau) and PEP 38238 (Blackmount) located in onshore Western Southland Basin on the South Island of New Zealand. The drilling program is designed to confirm the coal seam gas potential in the Company's onshore Western Southland Basin permits, which initial analysis indicates may hold up to 300 PJ of CSG potential resources.

Mosaic Oil NL (ASX:MOS)(PINK:MSAOF) is pleased to advise that the Company has been successful in a joint bid with L&M Petroleum (ASX: LMP) in being awarded Permit PEP 51151 onshore Taranaki Basin, New Zealand. LMP will be operator for the joint venture, and both Mosaic Oil and LMP will each hold a 50 percent interest in the permit.

L&M Petroleum Limited (ASX:LMP)(NZE:LMP) is pleased to announce that it has entered into a contract with Washingtons Exploration Limited to use its Rig #8 to drill the first three wells to be drilled in the Company's 2008 coal seam gas (CSG) exploration program in the South Island of NZ.