Coal Seam Gas is a relatively new and developing source of natural gas worldwide. While sometimes viewed as an unconventional gas, recent changes in the New Zealand energy scene, including the unexpected 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 assessment of the resource beginning in the 1980s.

Seventy two percent of New Zealand's recoverable coal resources lie within the Southland region. Exploration for coal seam gas has begun with L&M drilling six exploration holes at their Ohai site. Preliminary studies have also begun on their Winton permit area.