A 25-year-old Ballykelly man has appeared in court charged with possessing £10,000 worth of cannabis with intent to supply.
Kevin Doherty of Shackleton Crescent was charged with possessing the drugs on Wednesday.
He was also charged with unlawfully supplying drugs on October 26.
Deputy District Judge Bernie Kelly released the defendant on his own bail of £500, ordered him to be tagged and to observe a curfew.
Londonderry Magistrate's Court was told that when police entered premises in Ballykelly under warrant, the defendant pointed out 1kg of herbal cannabis.
When arrested, he made full and frank admissions and told police he had supplied drugs the previous day.
A police officer described the defendant as 'a cog' in the supply of controlled drugs.
35 packages were found at the premises and the defendant told police he packaged drugs there.
Police opposed bail on grounds of the seriousness of the offence.
Defence solicitor Paddy MacDermott said his client was 'well down' the pecking order of the drugs supply machine.
His client became involved because he had lost his job and gone into debt, according to Mr MacDermott.
He said his usefulness was now gone because he had been detected.
The defendant is to appear in court again on 24 November.