Oil and gas explorer L&M Petroleum Ltd has made its first foray into an oil drilling programme in the United States.
The company has agreed to 'farm-in' to a California oil prospect drilling programme with the company Salinas Energy.
That means L&M Petroleum will pay Salinas Energy a percentage of the drilling costs in exchange for a 20% working interest in the well.
The company says the agreement will allow it to balance its high-risk and high-reward exploration in New Zealand with opportunities targeting oil and gas in one of the most bountiful basins in the world.
L&M says the 'farm-in' agreement is subject to Salinas Energy securing another partner.
