Lakes Oil NL

Entitlement offer closed raising $1.9m of the $4.69m offered at $0.30, with underwriters covering a further $0.8m. About $2.0m of shortfall remains unplaced. Placement raised $3.3m, plus $0.7m needing shareholder approval on 23 September. Total so far falls short of the ~$8.7m target.

capital raising announcement

Raising about $8.7m at $0.30 per share: a $4.0m placement plus a $4.7m 1-for-4.7 entitlement offer, partly underwritten to $2.7m, each with a free $0.36 option. Funds go to Wombat perforation and testing. Boyd White resigned; Hugh Robertson joined the board. Price is far below the $1.15 placement of 2025.

capital raising announcement

Lakes reports preliminary talks with Victorian Government departments on Wombat supplying gas. Its own conceptual study models roughly A$605m NPV10, 58% IRR, first gas Q1 2029, with about A$169m initial capital. No government commitment or funding exists.

other

Chairman Roland Sleeman retired as director and chairman on 30 June 2026, after joining as CEO in 2016. The board is considering additional appointments.

director officer appointment

Wombat-5 pressure build-up reached about 1,764 psi, with at least 237 m of gas-bearing sand behind casing. Drilling damage is restricting flow; propellant perforation of at least 156 m is targeted for late August 2026, subject to approval. Still no commercial flow rate.

well test result

Wombat-5 flow and clean-up suspended and contractors demobilised, as further work is needed to establish full gas flow. A longer pressure build-up now runs, then, subject to approval, perforation and possibly acid washing. Setback to the test that began in January.

well test result

After nitrogen blow-downs, natural gas is flowing to the flare from all zones, including below the lowest sleeve, so the deepest sand beneath the stuck assembly contributes. Drilling fluid is still being cleared; no measured flow rates yet.

flow test result

Wombat-5 drilled about 1,500 m horizontally through three high-gas sand intervals; the middle one is a new discovery of gas shows. A stuck assembly and suspected fault at 2,450 m stopped the completion short, leaving 614 m barefoot. Flow testing starts 10 November.

drilling result

Wombat-5 reached planned total depth of 3,052 m MD with 1,500 m of horizontal hole in the gas-saturated Strzelecki Formation. Final 200 m showed gas up to 35.82%, matching the best Wombat-3 sands. These are mud-gas shows, not a flow test.

drilling result

Wombat-5 drilled 522 m in 72 hours to 2,916 m MD and entered the Wombat-3 sand package near 2,825 m on prognosis. Gas shows reached 3,374 units (67.49%). Target depth is about 3,050 m. Mud-gas readings, not a flow test.

drilling result

Horizontal drilling advanced 320 m in 24 hours to 1,899 m MD, passing the Wombat-2 location with gas shows up to 2,910 units (581,000 ppm) in good sands. Strong indication of gas-saturated reservoir, though a mud-gas reading and not a flow test.

drilling result

Lakes raised $5.8m in a two-tranche placement at $1.15 a share (about 5.04m shares). Tranche one is 4,608,696 shares. A director-linked entity (Nick Mather) takes $500,000, subject to AGM approval. Funds go to the Wombat project and working capital.

capital raising announcement

The 7 inch casing is set and cemented at 1,549 m, about 35 m into the Strzelecki, securing the well in the reservoir. Gas shows rose to 35 units (7,000 ppm). Target total depth remains 3,050 m.

drilling result

Wombat-5 entered the Strzelecki Formation at 1,410 m, about 4 m higher than prognosis, with first gas shows up to 12 units (2,400 ppm). Lakes says these are consistent with Wombat-2 and -3. Early indication only, not a flow test.

drilling result

Drilling resumed 22 August as sidetrack ST-2 after Lakes and the contractor agreed added redundancy against mud circulation failures. Contractor accepted a fixed-price arrangement to finish the well. Now at 1,100 m, about 260 m above the Strzelecki target. Resolves the stoppage.

drilling progress report

Wombat-5 spudded at 6am on 1 August 2025, the first Lakes well here since the 2013 drilling ban. It is a horizontal well to about 3,050 m, with drilling and completion expected to take about four weeks, then a production test.

drilling spud

Binding Heads of Agreement with Beijing Maison Group: Maison will fully fund a feasibility study for a 150-200 T/day food-grade CO2 plant at Nangwarry (26 Bcf certified; Lakes 50%, Vintage 50%). Plant could operate in first half 2027 if the study is favourable.

material agreement

All conditions on the Minister's consent are met after Lakes lodged a bank guarantee for the $898,500 Wombat-5 rehabilitation bond. Rig #1 is on track for mid-July mobilisation, with spud on 31 July 2025. The Wombat-5 approval thread is resolved.

regulatory community update

ASX lifted the suspension, with trading resuming 4 July 2025. This ends the suspension that began 2 October 2023 and resolves the main open listing thread, ahead of the ASX's long-term suspension deadlines.

listing compliance notice

Underwritten placement of 8,663,667 shares at $0.75 to raise $6,497,750, a 25% discount to the last trade price of $1.00 before the October 2023 suspension. Tranche one is issued after reinstatement; tranche two needs a shareholder vote. Pro forma cash is about $9.4m. Directors take up to $636,024 in lieu of owed fees.

capital raising announcement

Victorian Minister consented to drill Wombat-5 at PRL 2, subject to rehabilitation bonds. Stage 1 bond is paid; Stage 2 bond hoped to be agreed by 30 June. Condor rig mobilises week of 14 July, spud about 21 July. Well budget is now $7.5m, up from about $5.5m.

regulatory community update

The final $3.5m of the PEP 169 sale was received on 10 January 2025, bringing total proceeds to $6.5m. Lakes keeps a royalty of about 4% of wellhead value. This resolves the deferred payment; focus now turns to drilling Wombat-5.

asset acquisition disposition

The PEP 169 sale completed on 9 October and Lakes received the first $3.0m. A further $3.5m follows registration of the title transfer, plus a royalty of about 4% of wellhead value. Lakes will now seek to have its shares reinstated. Note: the highlights contain a typo, '2088'.

asset acquisition disposition

CEO Roland Sleeman intends to retire as CEO at the 2024 AGM, citing personal reasons. Chairman Richard Ash becomes CEO for now, and Sleeman stays on the board and becomes Chairman. Sleeman joined in June 2016.

director officer appointment

The sale agreement for Lakes' 49% of PEP 169 to ADZ's Armour Energy (Victoria) is signed, confirming the 27 June terms: $3.0m on completion, $3.5m on title transfer, plus a 6% royalty on ADZ's 51%. Director Nick Mather did not support completion. Wombat-5 drilling is targeted for Q2 2025.

asset acquisition disposition

Terms agreed to sell Lakes' 49% of PEP 169 to ADZ Energy for $6.5m cash plus a royalty on ADZ's 51% share. Cash arrives in stages, tied to a permit extension and transfer registration. Lakes says it funds Wombat-5 in Q2 2025 and will seek to end its suspension.

asset acquisition disposition

Arrowie Basin deal with Gehyra revised: Gehyra takes full ownership of the licence applications and pays Lakes $150,000 now, $350,000 later and $1.0m on first commercial helium or petroleum production. Royalties are 2.5% on helium or hydrogen and 3.5% on petroleum. Replaces the June 2023 50:50 structure.

material agreement

Lakes agrees to take Jarden's 42.5% of Trifon/Gangell, giving 100% of PRL 2 and 719 Bcf of 2C gas (Wombat 329 plus Trifon/Gangell 390). Jarden gets about $170,000 of debt forgiven and a 2.5% royalty capped at $10m.

asset acquisition disposition

Lakes drops the Cooper Energy PEP 169 farmout announced in October 2023 after two unsolicited offers it calls materially superior. Terms are confidential and under evaluation. Ends the $1.2m Cooper deal that the company's funding claims rested on.

farm in farm out agreement

Administrators and receivers appointed to Armour Energy, Lakes' 51% partner in PEP 169. Lakes says there is no overall impact; its subsidiary Mirboo replaces Armour as operator and will pursue unpaid costs, possibly by acquiring Armour's interest. Enterprise North-1 still targeted mid-2024.

joint venture update

Binding terms agreed to farm out 25.1% of PEP 169 to Cooper Energy for $1.2m upfront, plus funding Lakes' Enterprise North-1 well share up to $1.25m. Subject to due diligence and Armour's matching right. Drilling now targeted around mid-2024; Lakes says it is funded through 2024.

farm in farm out agreement

The rights issue closed raising only $363,480 of a possible $1.73m, with 605.8m shares to be issued including bonus shares. The Chairman, the Managing Director and 1,295 others applied; about 2.29bn shares of shortfall remain, which directors may place.

capital raising announcement

ASX suspends Lakes' shares from 2 October 2023 for not lodging its periodic report by the due date, one of many companies listed. Trading is normally reinstated once the report is lodged.

listing compliance notice

Prospectus for a non-renounceable entitlement offer: 3 new shares per 100 held at 0.1 cent, plus 2 free bonus shares per 3 subscribed. Maximum raise is $1,734,753, not underwritten, closing 22 September 2023. Follows cash falling to $758k.

capital raising announcement

Lakes sells 50% of its six Arrowie Basin (SA) licence applications to Gehyra Flux, which will fund native title work and get exclusive natural hydrogen rights. Lakes keeps petroleum rights; each pays the other a 2% royalty on any production. No cash payment is stated.

farm in farm out agreement

March 2023 quarter: cash $1.24m. The convertible notes matured 31 March 2023: 11.17bn converted to shares and notes worth $301,529 were redeemed, leaving 57.83bn shares. Also reports a dispute with Victoria's regulator over well rehabilitation bonds (state estimate $6.9m versus Lakes' $1.4-1.6m experts), and the unfavourable R&D ruling.

quarterly activities report

The tribunal affirmed the rejection of Lakes' 2013/14 R&D claim, resolving the long-running appeal against it. Lakes owes $605,000, the balance of the $1.02m grant including interest and a penalty, and is considering a Federal Court appeal within 28 days.

regulatory community update

Lakes estimates the Enterprise North prospect in PEP 169 holds up to 419 Bcf of gas and 10 million barrels of condensate (209 Bcf and 5 MMBbl net), with a 72% stated chance of success. It is unrisked, undrilled, and approvals are still underway.

resource reserve update

Lakes flags a new prospect, Enterprise North, in PEP 169 (Lakes 49%, Armour 51%), on trend with Beach's Enterprise discovery. Work has begun to get approval for a vertical well. No resource figure given yet.

drilling scheduled

Lakes signed a Technical Cooperation Agreement with TotalEnergies on PPL 560 (Buna). TotalEnergies funds the studies and seismic and can take 75%, funding the first US$30m of a first well; Lakes keeps 25%. This follows the Buna farm-out talks.

farm in farm out agreement

Victoria approved Lakes' work programs for its exploration permits, unchanged from pre-2012 ban versions. With the ban lifted, Lakes can resume on-ground work. Wombat-5 and Otway-1 drilling is targeted around mid-2022, subject to approvals. PRL 3 extension still not processed.

regulatory community update

Wellesley-2 failed to discover gas; it hit the muddy edge of the sand channel rather than thick reservoir. Lakes plans an iodine survey, then 3D seismic. The well met an ASX relisting condition. Wombat-5 and Otway-1 approvals continue, with drilling targeted mid-2022.

drilling result

Underwriter Bizzell exercised its option to take a further $1.604m placement at the same terms, subject to shareholder approval at the coming AGM. This would lift total raised to $7.093m, excluding directors' subscriptions, and cut funding still needed for Wombat-5.

capital raising announcement

Wellesley-2 intersected the Boxvale target, which was thinner and finer-grained than predicted, with gas shows about 3 times background. Gas shows are in drill cuttings and not proof of flow. A straddle test after drilling to total depth will assess flow potential.

drilling result

Wellesley-2 spudded at 10.00am on 10 February 2022 in ATP 1183 (100% Lakes), later than the January 2022 spud first planned. The roughly $1.6m vertical well targets a 41 Bcf best-estimate prospective resource, with drilling and testing expected to take 10 to 14 days.

drilling spud

ASX says Lakes shares will be reinstated at 10:09am on 7 February 2022, with 42.38bn shares on issue. This ends the suspension that began October 2019.

listing compliance notice

Offer fully subscribed: $4,342,810 raised under the prospectus plus $1.146m of earlier placements, $5,488,810 in total, well above ASX's $3.55m. Shares issue 2 February; trading expected to resume by 7 February 2022.

capital raising announcement

Minimum subscription of $2.404m reached on 25 January, taking total raised to $3,855,093 and exceeding the $3.55m ASX condition. Funds stay in escrow until trading resumes. This meets the main ASX reinstatement condition.

capital raising announcement

Prospectus lodged 7 January 2022 offering up to 5.43bn shares at 0.08c to raise up to about $4.34m, closing 24 January 2022. Described as highly speculative. Lakes will seek ASX reinstatement; the text is truncated.

capital raising announcement

Earthworks began 29 December 2021 for Wellesley-2 in Queensland (ATP 1183, 100%), meeting one ASX condition. Spud is planned for January 2022, at about $1.6m cost, targeting a 41 Bcf prospective resource. Drilling and testing should take 10 to 14 days.

drilling scheduled

ASX will reinstate Lakes shares, after about two years' suspension, if it raises $3.55m and starts earthworks for the Wellesley-2 well in Queensland, both by 1 January 2022. This resolves the long-running suspension question only if the conditions are met.

listing compliance notice

Nangwarry best-case saleable CO2 resource confirmed at 25.9 Bcf gross (12.9 net), a slight rise from 25.1 Bcf in August 2020. Well tested at up to 18.6 MMscfd against about 3 MMscfd needed for a 150 t/day plant. Licence upgraded to Retention on 5 May 2021.

resource reserve update

Nangwarry-1 flowed 10.8 MMscfd steadily over two days, with a peak of about 22 MMscfd. Lakes says results beat expectations and the gas column is much taller than assumed, so the 12.6 Bscf net estimate is likely to be upgraded. Investment decision targeted for 2H 2021.

flow test result

Lakes placed 2.28bn convertible notes raising $2.075m at 0.09c each, with a new royalty on PRL 2 and PEP 167, 169 and 175. A further $1.1m of notes goes to directors Mather and Sleeman as loan settlement, subject to shareholder approval. Aim is to show 12 months of funding for ASX.

capital raising announcement

PNG's Minister extended the term of PPL 560, which contains the Buna prospect, by three years to December 2025, compensating for time lost to the unlawful cancellation. This resolves the pending extension; Lakes is now planning a farm-out to fund drilling.

regulatory community update

Vintage announces an independent (ERCE) best-case 25.1 Bcf gross recoverable CO2 for Nangwarry (low 7.8, high 82.1), 12.6 Bcf net to each 50% partner. Gas column now about 90 m, up from the 65 m advised earlier; roughly 90% CO2.

resource reserve update

Vintage (50% partner) announces a non-binding MOU with Supagas, which will fund preliminary design and costing of a food-grade CO2 processing facility for Nangwarry, in return for the chance to bid to develop or buy the gas. Extended flow test targeted late 2020, COVID permitting.

material agreement

Shares remain suspended and the half-year report is overdue. Convertible notes have raised $3.8m since December. Victoria extended its ban by a year, to mid-2021, though tenure terms reset to five years. Nangwarry-1 flow testing is planned around mid-year.

other

Gas samples from Nangwarry-1 show 92% and 89% CO2, not the expected outcome, undermining the earlier gas-column result. Lakes points to the Caroline-1 CO2 operation as a precedent and will still case and suspend the well for flow testing.

drilling result

Logging confirmed a minimum 65 m gas column at the top of the Pretty Hill at Nangwarry-1. The lower interval could not be logged definitively. The well will be cased and suspended for flow testing; gas quality awaits sample analysis.

drilling result

Nangwarry-1 reached 4,300 m. The secondary Sawpit target was intersected but was not gas-bearing. Two potential gas intervals, each about 140 m thick, were found in the primary Pretty Hill target; logging is under way.

drilling result

The Court of Appeal rejected Lakes' appeal against the Macaulay judgment on the Victorian exploration moratorium, with costs awarded to the Victorian Government. This resolves the long-running case against Lakes. The chairman calls it of little consequence with the moratorium expiring in about six months.

regulatory community update

Lakes arranged up to $6.03m of convertible notes at 0.09 cents each, 15% interest, secured over its assets, maturing 31 December 2021. First $600k placed; balance to be underwritten by Bizzell, with $3m sub-underwritten by a Nick Mather-related trust. Funds Nangwarry-1.

capital raising announcement

Nangwarry-1 in South Australia's Otway Basin spudded on 1 December, as expected after earlier delays. It targets two gas reservoirs, with 28.5 Bcf best-estimate prospective resource net to Lakes, and is forecast to take 45 days to 4,265 m. Partly funded by the $4.95m PACE grant.

drilling spud

Chairman Chris Tonkin, Ian Plimer and Kyle Wightman resigned from the board. CEO Roland Sleeman joined as a director. No reason is given in this notice.

director officer appointment

Lakes signed a Controlled Placement Agreement with Acuity Capital giving standby equity of up to $10m to 31 January 2022. Lakes decides if and when to use it. As collateral it will place 1.7bn shares for nil consideration, returned at expiry subject to shareholder approval.

capital raising announcement

Lakes says suspension stems from late filing while it satisfied its auditor over the ATO's R&D clawback of the 2013/14 grant (appeal not before April 2020). ASX wants an unqualified audit opinion to resume trading; a prospectus-backed capital raising is being expedited.

listing compliance notice

ASX suspended Lakes Oil shares from 1 October 2019 for failing to lodge its annual report by the due date.

listing compliance notice

PNG court quashed the former Minister's April 2018 cancellation of PPL 560 and awarded costs to Lakes, resolving the tenure dispute. Exploration can resume at the multi-Tcf Buna prospect; Lakes will seek a term extension.

regulatory community update

Easternwell Rig 106 secured for Nangwarry-1 (45-day well). Spud now expected October/November 2019, later than the May target. Prospect has 57 Bcf gross (28.5 Bcf net to Lakes), with a $4.95m PACE grant; Otway 50%, Vintage 50%.

drilling scheduled

Counsel for PNG's Minister told the court the April 2018 cancellation of PPL 560, which holds the multi-Tcf Buna prospect, will be revoked. The review was adjourned to 7 June 2019 to finalise settlement and will proceed that day if no acceptable deal is reached.

regulatory community update

Prospectus offering remaining Rawson holders 15 Lakes shares per Rawson share, closing 20 May 2019. It values Lakes shares at 0.1 cent. It warns the company is in a tight financial position and that auditors disclaimed a conclusion on going concern for the half-year.

capital raising announcement

Half-year to 31 December 2018: loss $2.62m (prior year $1.12m), including $1.02m booked for a rejected R&D tax claim. Net assets $14.42m, but a working capital deficit of $1.31m and operating cash outflow of $1.61m. The text is truncated; the later prospectus says the auditor disclaimed a conclusion on going concern.

half year report

The entitlement offer raised about $2.08m against the $6.13m target, leaving a $4.05m shortfall. Lakes says this is enough to commit to drilling Nangwarry-1, now expected May 2019, slipping from the earlier April target.

capital raising announcement

Lakes launched a 1-for-5 non-renounceable entitlement offer to raise up to $6.13m, to fund Otway Basin drilling in South Australia and costs including the legal case against the Victorian Government. This is the Entitlement Offer flagged at the November AGM. Closes 1 February 2019.

capital raising announcement

Lakes completed a placement of 350,000,000 shares at 0.1 cent each to professional investors, raising about $350,000 before costs for working capital. It uses the company's existing placement capacity.

capital raising announcement

Lakes will appeal Justice Macaulay's 21 September judgment, saying advice shows he misapplied the law. The appeal is not expected to be heard until 2019. Nangwarry-1 is scheduled to spud in January 2019.

other

The Rawson offer closed on 24 September with Lakes holding 89.18% of Rawson, subject to processing of late acceptances. Lakes is preparing to drill Nangwarry-1, 57 Bcf best-estimate unrisked prospective resource, part-funded by a $4.9m South Australian grant.

business combination

Judgment in Lakes' case against the Victorian Government, handed down 21 September, went against it. This resolves the long-reserved decision and means no Victorian onshore exploration until the ban expires mid-2020. An appeal is under consideration.

other

Acceptances reached 51.61% of Rawson and Lakes declared its takeover offer unconditional. Lakes intends to delist Rawson after the offer closes. The Chairman ties Rawson's South Australian Otway opportunities, including Nangwarry-1 drilling later this year, to Lakes' ban-constrained Victorian assets.

business combination

Lakes offers 15 of its shares per Rawson Oil & Gas share, valuing Rawson at $3.75m, with Rawson directors recommending acceptance. It has pre-bid acceptances for 19.99%, will lend Rawson $750,000, and aims to combine Otway Basin positions including the Nangwarry-1 well.

business combination

The share purchase plan closed with applications for 1,363,250,000 shares at 0.15 cents, raising $2,044,875. The Chairman says this leaves Lakes well placed to finish the Victorian Government litigation and resume conventional exploration. Trial is set for 14 March 2018.

capital raising announcement

The Minister replied on 4 December refusing to enter dialogue on Lakes' October proposal to drill conventional wells. This resolves the open question of a Government response, and closes off that route to restarting Victorian drilling.

regulatory community update

Lakes offers eligible shareholders a share purchase plan of up to $15,000 each at 0.15 cents a share, a 25% discount to the recent 5-day average price. It closes 8 December. Funds cover working capital, litigation costs, ATP 1183 drilling and Victorian preparatory work. No target size is stated.

capital raising announcement

Lakes has binding commitments for a placement of up to 696,666,668 shares at 0.15 cents to raise about $1.045m, using its existing placement capacity. Proceeds go to ongoing working capital.

capital raising announcement

Lakes made a formal offer to the Victorian Minister: no unconventional gas, permission to drill Wombat-5, Otway-1, Greenslopes-2 and Portland Energy-1, Victorian supply first, landowner revenue sharing, an at-cost government loan, and relinquishing PEP163 for agreed consideration. No response is stated.

regulatory community update

Court orders by consent set the Victorian Government case for a 2–3 day trial from 14 March 2018. Lakes must file further material by 13 October 2017 and the Government by 24 November. This gives the litigation a firm trial date.

regulatory community update

Entitlement offer closed with applications for only 341,934,880 shares, raising $683,870 against up to $12.6m. DGR is to take 408,065,120 shares as underwriter. About 5.55 billion shares remain as shortfall. Shares on issue would be about 22.4 billion.

capital raising announcement

Lakes launched a 1-for-4 non-renounceable entitlement offer to raise up to $12.6 million, partly underwritten by DGR, each new share with a bonus performance right. Funds go to exploration, a loan repayment, litigation and working capital. Issue price not stated in the text.

capital raising announcement

Prospectus for the 1-for-4 entitlement offer at 0.2 cent per share, raising up to $12.6m, partly underwritten to $1.5m by DGR. Each share carries a bonus right converting to 1.25 shares if 60-day VWAP exceeds 0.8c before 2022. Closes 17 March 2017.

capital raising announcement

NavGas acquisition completed on 18 January 2017 after shareholders approved it on 16 January, with 9.6 billion shares issued. Lakes now owns 100% of the Queensland and South Australian acreage and plans to drill Wellesley (~1,650 m) and Major East (~1,850 m) in ATP 1183.

asset acquisition disposition

Lakes and two subsidiaries filed a Supreme Court writ claiming over $2.7 billion damages from the Victorian Minister for 'derogation from grant', including $92m past spend and over $2.6bn risk-weighted lost future earnings. Funding talks under way. Adds to the 27 October judicial review.

regulatory community update

Lakes signed the binding Share Purchase Agreement to buy the remaining 96% of NavGas for 9.6 billion shares, formalising the 6 October heads of agreement. Needs shareholder approval at the AGM; completion within 5 days. DGR also signed a conditional $1.5m underwriting of a rights issue, expected early 2017.

asset acquisition disposition

Two Lakes subsidiaries filed in the Victorian Supreme Court seeking judicial review of the Minister's refusal to consider onshore exploration applications. They argue the decisions were made without authority. Follows the legal action investigation announced on 8 September; no outcome yet.

regulatory community update

Lakes signed a Heads of Agreement to buy the remaining 96% of NavGas for 9,600 million new shares at $0.001 each, subject to shareholder approval. Brings Pirie Torrens (SA) and Roma Shelf (Qld) acreage; now the principal exploration focus while Victoria stays banned.

asset acquisition disposition

2016 annual report: Chairman says the Victorian ban forced Lakes to significantly impair its Victorian assets and left it in a 'precarious financial position'. Only $536,660 was raised in the notes issue. Talks are advanced to place 58,000 more notes and buy acreage outside Victoria.

annual report

Dark Horse Resources says it is investing $400,000 in 40,000 Lakes notes, while Lakes buys a 4% stake in NavGas from Dark Horse for $400,000. NavGas holds South Australian and Queensland exploration acreage. This is the counterparty's view of the deal.

asset acquisition disposition

Lakes placed 58,000 converting notes for $580,000 and bought 4% of NavGas for $400,000, giving a foothold in South Australia and Queensland acreage. The CEO calls it a small first step in securing the company's future beyond the Victorian ban.

capital raising announcement

The notes issue raised only $0.542m of the up to $7.1m sought, with 561 holders taking up notes. A 660,604-note ($6.601m) shortfall remains, which directors may place within three months. Applicants can still seek refunds until 3 October.

capital raising announcement

Lakes confirms it is formally investigating possible legal action over the Victorian ban. Note trading is pushed to 4 October at ASX's request, with issue still on 16 September. A new thread, with no action yet filed.

other

Victoria announced a permanent ban on unconventional gas and extended the conventional onshore gas ban to 30 June 2020. Lakes calls it unprecedented and says it must consider all options. Mather's $1m underwriting lapses; early note applicants get a one-month chance to withdraw.

regulatory community update

Lakes proposes a rights issue of 10% converting notes at $10 each, 1 for 20,000 securities held, raising up to $7.1m. Notes mature 31 May 2018 and convert into 9,091 shares each (up to 10,000), a richer rate than the 2015 notes.

capital raising announcement

Roland Sleeman, an Armour Energy director, is appointed CEO on a term to 8 December 2016 to lead a strategic review. CFO Les Smith leaves on 30 June 2016, and Melanie Leydin takes over part-time. Directors cut fees by 33%. The Victorian Government decision is delayed to August 2016.

director officer appointment

Lakes filed a final director's interest notice showing Robert Annells ceased as a director on 20 May 2016. It listed 5,237,259 shares in his own name, 5,000 held via Humber Hawke Pty Ltd, and 101,995,000 held through his super fund.

director officer appointment

Armour's board recommends WestSide's raised $0.20 cash takeover bid. If it goes unconditional, Armour will distribute 6.9755 Lakes shares per Armour share as a dividend in specie. Armour's roughly 19.9% Lakes stake would therefore be passed on to its shareholders (inference).

business combination

Armour Energy, the PRL 2 and PEP 166/169 partner, has given notice of resolutions to remove Executive Chairman Rob Annells and director Barney Berold. Lakes must hold a shareholder meeting in September 2015, with notice documents due in August.

other

The note rights issue raises $4.12m of the up to about $11.3m sought, leaving a $7.18m shortfall that directors may place at their discretion within three months. Notes issue 24 April 2015.

capital raising announcement

Letter to shareholders on a planned note rights issue: one $10 note per 10,000 shares, raising up to about $11.3m. Hancock (18.89% holder) commits $2.125m. Funds are for Queensland and offshore permits, Otway preparation and working capital.

capital raising announcement

The 219,010 remaining converting notes convert into 1,095,050,000 new fully paid shares (5,000 each), bringing quoted shares to about 11.25 billion. This ends the 2012 note issue, which matured 30 November 2014.

security holder rights change

Lakes is awarded two new offshore Gippsland Basin permits, VIC/P43(V) and VIC/P44(V), for six years of exploration. No work program or cost is given in the text. It adds offshore acreage while onshore Victoria remains frozen.

asset acquisition disposition

Lakes says it is acquiring two Queensland permits, ATP 642P and ATP 662P, in the Cooper/Eromanga Basin. It says this reduces dependence on Victorian exploration. No price or interest is stated.

asset acquisition disposition

Lakes signs a second conditional 10-year letter of intent, to supply gas to Dow Chemical (Australia). As with Simplot, it depends on a formal agreement, Wombat commercialisation and the moratorium being lifted.

material agreement

Lakes agreed to acquire 100% of Otway Basin permits PEP 167 and PEP 175 from Bass Strait Oil Company, subject only to regulatory approval. No price was given, and Lakes said it could not move forward until the onshore drilling ban was lifted.

asset acquisition disposition

Lakes signs a conditional 10-year letter of intent to supply gas to food manufacturer Simplot, one of two planned foundation deals. It depends on a formal agreement, Wombat commercialisation and the lifting of the Victorian drilling moratorium, so it is not yet a firm sale.

material agreement

Lakes confirms receiving Armour's letter 'purporting to exercise' its right to match the Beach farm-in. Lakes notes the $10m two-well fracturing program is prohibited under the moratorium. Wording suggests Lakes does not fully accept the exercise (inference).

farm in farm out agreement

Armour says it exercised its right to match Beach's PRL 2 farm-in: operator, 15% interest now for a $10m program within 12 months, up to 50% with a further $40m. The work is suspended by the fracturing ban and Armour seeks revised terms. It plans to drill Wombat-5.

farm in farm out agreement

Lakes issued 2.891bn shares on early conversion of 578,222 notes, taking fully paid shares to about 10.1bn. Roughly 227,832 notes remain. Conversion removes most of the $10-per-note debt and further interest but dilutes shareholders heavily.

security holder rights change

Lakes applied to drill Wombat-5 in early 2014, a conventional well without fracturing, targeting the weathered top of the Strzelecki Formation. This is the non-fracture route to Wombat production flagged earlier. Drilling is subject to approval and financing; no cost given.

drilling scheduled

Lakes signed a non-binding MOU with Sinopec subsidiary CSOLPE to study joint development of its Gippsland permits, supplying gas for urea and chemicals. Due diligence starts this month; a binding deal would follow only if satisfactory. A possible new partner while PRL 2 is stalled (inference).

material agreement

Beach Energy and Somerton (now Cooper Energy) formally withdrew from the PRL2 farm-in, and their interests went back to Lakes. Armour now has six months to match any third-party farm-in. This ends the Beach deal that was stalled by the moratorium.

farm in farm out completion

Yallourn Power-1 reached 1,201m total depth, with 791m of core recovered. It confirmed a thick Early Cretaceous shale sequence, with background gas up to 75 units. It is a corehole with no flow; core evaluation continues, so the oil source rock theory is not yet resolved.

drilling result

Lakes placed a further 632,084 notes ($6.32m) of the shortfall, including $4.25m from a Hancock Prospecting subsidiary (18.6% diluted interest) and $1.758m from Armour to reach 18.6%. Professor Ian Plimer joins the board. With the earlier $2.29m, the notes raise about $8.6m.

capital raising announcement

Converting note rights issue raised $2.29m at $10 per note. A $4.91m shortfall remains, which directors may place at their discretion over the next three months. Far short of the full amount offered.

capital raising announcement

Yallourn Power-1 corehole in PEP 166 spudded, targeting 1,200–1,500m to test the thickness of the oil-bearing carbonaceous Rintouls Creek Formation. Lakes calls it a potential game changer. It is Lakes' third Victorian well in eight months, under the 75:25 Armour joint venture.

drilling spud

Supplementary prospectus discloses the auditor's going-concern qualification and says Lakes needs $2.3–2.5m to operate to September 2013. It plans $3.5m of project spending, with $1.5m for Otway-1 first. Fallbacks include extending a $1m 12% secured loan, farm-outs and selling property.

capital raising announcement

Chairman's letter launches the converting notes rights issue: $10 notes, 10% interest, converting at up to 0.2c per share, with no minimum raise. Funds target Otway-1, Lakes Entrance oil wells and a PEP 166 core hole. Armour would put in up to $1.4m to reach 15%.

capital raising announcement

Lakes proposes a non-renounceable rights issue of listed unsecured converting notes at $10 each, one note per 10,000 shares held, minimum $500. Interest is 50 cents per note half-yearly, equal to 10% a year. Total size is not stated in this announcement.

capital raising announcement

Chairman says Victoria's government moratorium on fracture stimulation, aimed at coal seam gas, also catches Lakes' deep tight gas work. Beach's Wombat-4 and Boundary Creek-2 fracturing, due before Christmas, is affected. Annells says financing will be harder under the moratorium.

regulatory community update

Holdgate-1 was logged, plugged and the rig released at 2,752m. Continuous gas readings across large Strzelecki intervals were described as typical of a tight gas well, with carbonaceous shale cores sent to the lab. No flow test; full assessment of tight gas potential to follow.

drilling result

Holdgate-1, a wildcat on the Baragwanath Anticline in PEP 166, spudded 23 May 2012. It targets Strzelecki tight gas and deeper Rintouls Creek oil seen at Yallourn North-1A. Armour funds it as part of earning 51% of PEP 166.

drilling spud

Moreys-1 found tight gas and condensate in the Eumeralla Formation (DST#2 flowed gas to surface then faded), but the Waarre C primary target appears tight. Armour has earned its 51% of PEP 169. Holdgate-1 is to spud around 20 May.

drilling result

Moreys-1 in PEP 169, Otway Basin, was spudded on 20 April 2012, the first well under the Armour deal. Armour funds the $2.5m cost to earn 51%; the primary target at ~1740m is expected in about 10 days.

drilling spud

Nick Mather and Bill Stubbs, Armour-linked nominees under the December 2011 agreement, joined the Lakes board. Both also hold roles at DGR Global, Armour's parent. Annells remains chairman. Fulfils one of the Armour deal conditions.

director officer appointment

Armour Energy agreed, subject to due diligence, to subscribe 900m shares at 0.25c ($2.25m), fund a Morey well to earn 51% of PEP 169, and earn 51% of PEP 166 by spending up to $9m. It gets a $30m, 3-year PRL 2 option and two board nominees.

farm in farm out agreement

September quarter report: a Gaffney Cline assessment puts the Baragwanath Anticline's prospective gas in place at about 2.3 TCF (P50) across PEP 166 and PRL 2. Wombat-4 and Boundary Creek-2 fracturing now expected December 2011 or January 2012. PEP 164 relinquishment is noted.

quarterly activities report

Lakes relinquished its PEP 164 permit in the Otway Basin, citing risks to prospectivity including hydrocarbon maturation, timing of expulsion and trap formation and breaching. This ends the permit's commitment well obligation, which had been planned for Q4 2010.

asset acquisition disposition

The share purchase plan raised about $1.56m from 312,226,578 shares at 0.5 cents. This is not enough to fund Holdgate-1 in PEP 166, which is deferred until funds or a joint venture partner are found; a core hole, Yallourn Power-1, is planned instead.

capital raising announcement

Lakes offers existing shareholders a share purchase plan of up to $5,000 each at 0.5 cents per share, about an 8% discount to the five-day average price. Applications close 25 May 2011. No total target is stated.

capital raising announcement

Lakes' subsidiary Commonwealth Mining applied for two Latrobe Valley brown coal exploration licences, a new coal focus. A shallow core hole found shale generating oil, which Lakes calls significant. Holdgate-1 pad in PEP 166 is ready; drilling is subject to funding and a rig.

regulatory community update

December quarter report: Beach took over operating PRL 2 and ran the Wombat-2 test (about 0.8 mmscfd). Lakes terminated the Latrobe Fuels PEP 166 agreement because Latrobe could not meet its obligations. Lakes plans to drill one well there in late Q1 or early Q2 2011.

quarterly activities report

Wombat-2 flowed about 0.8 mmscfd over twelve days on a 1-inch choke from its single fractured zone, now shut in for pressure build-up. Beach's share and Somerton's earn-in are now up to 33.3% and 16.7%. Lakes plans to terminate Latrobe Fuels' PEP 166 deal.

flow test result

Somerton Energy will earn up to 5% of PRL 2 from Lakes by funding 33.3% of fracture testing Wombat-2 and Boundary Creek-2, costing up to $3.33m. It can earn up to 16.7% total with a further $13.33m. Subject to final documents; Beach operates.

farm in farm out agreement

Lakes placed 210m shares at 0.65 cents to raise $1.365m before brokerage, for current work programs. No shareholder approval needed.

capital raising announcement

Lakes and Beach sign an unconditional $50m PRL 2 farm-in: up to 15% for $10m, then up to 50% total for a further $40m. Subject to Victorian government approval. Beach will use best endeavours to complete stage one within 12 months. Wombat-3 oil re-entry is added to stage one.

farm in farm out completion

Lakes accepts Beach Energy's offer to earn up to 50% of PRL 2: 15% for $10m funding Wombat-4 and Boundary Creek-2 fracture tests, then up to 35% more for $40m. Beach would become operator. Subject to due diligence and Beach board approval.

farm in farm out agreement

Latrobe Fuels can earn up to 50% of a portion of PEP 166 by drilling up to two wells to 2,000m at its own cost, with the first to start by 31 December 2010. It also gets first right of refusal over Lakes' share of any production.

farm in farm out agreement

Half-year to December 2009: loss of $60,360, helped by a $1.47m investment gain, after raising $10.56m from rights and partly paid issues. In February 2010 the government refused the PEP 158 retention lease; Lakes is exploring appeals, with $2.74m of costs at risk of write-off.

half year report

Wombat-4 is declared a tight gas discovery. Three Latrobe tests flowed small amounts of gas at unmeasured rates, and the Strzelecki (1,350-2,500m) appears gas saturated but will need fracturing to flow. Casing is being set for later fracturing. Oil and condensate are indicated.

drilling result

Four Wombat-4 Strzelecki tests (e.g. 1,383-1,478m) all flowed gas at unmeasured rates. Consultants judge the whole 1,350-2,500m section gas saturated, but it will need fracturing. A Latrobe test at 1,171-1,174m gave a little wet gas before the tool failed.

drilling result

Wombat-4 reached 2,500m total depth. Logs, a drill stem test and core data indicate oil and condensate as well as gas in the Strzelecki. Tight gas may need fracturing to flow, so more tests and later stimulation are planned.

drilling result

A drill stem test of the Strzelecki between 1,383m and 1,478m in Wombat-4 flowed gas to surface at an undisclosed rate. Gas is mostly methane with heavier hydrocarbons up to C5. The well is at 1,680m, with 2,000m planned.

drilling result

Wombat-4 spudded on 17 October and is at 302m, setting surface casing. It is the first onshore Gippsland well drilled with 3D seismic, about 1.5 km southwest of Wombat-2, targeting the Strzelecki at about 1,311m and the Latrobe as a secondary target.

drilling spud

The 1-for-4 rights issue closed with $9.3m of applications, against about $11m sought, so it was not fully subscribed. Wombat-2 chemical treatment on 21 August has not freed the gas flow, which remains reduced. Wombat-4 is still expected to spud in late September.

capital raising announcement

Lab tests show Wombat-3 oil is unaltered and not biodegraded, API gravity 34-51, similar to Bass Strait oil. Lakes also clarifies its share of the PRL 2 valuation is $79-155m, since it holds 50% of Trifon, Gangell and Seaspray.

well test result

Palliser Strategic Management values the PRL 2 gas assets at $104-217m (P50), against Lakes' market value of about $44m. Wombat-2 flow has settled at 600,000-700,000 cf/day, down from a 1.8m peak; a chemical wash is planned for 18 August.

resource reserve update

Lakes launches a 1-for-4 non-renounceable rights issue at 1 cent, raising about $11m if fully subscribed, closing 21 August. Funds are for Wombat-4, now revived with a rig secured for early September, subject to approvals. Reverses the May deferral.

capital raising announcement

Wombat-2 re-frac succeeded: flow initially estimated at 4.3 million cubic feet a day, stabilising at 1.35 million versus 680,000 before. Gaffney Cline puts Greater Trifon 2C contingent resource at 390 bcf, lifting the Trifon plus Wombat 2C total to 683 bcf.

resource reserve update

Oil is flowing into Wombat-3 from the 2,106m zone after 50m of frac sand was cleared. Lakes calls it the first non-biodegraded oil flow from the Strzelecki Group in the Gippsland Basin. The flow rate is not yet measured.

well test result

Lakes placed 200 million shares at 0.5 cent through Patersons Securities to raise $1m before brokerage. Funds go to the current workovers at Wombat-3, North Seaspray-3 and Wombat-2. First raising since the April 2008 $5.2m share plan at the same price.

capital raising announcement

Lakes defers Wombat-4, previously planned for early 2009, because of high rig-mobilisation costs, hoping costs normalise within 12 months. It will instead re-enter Wombat-2, Wombat-3 and North Seaspray-3. Cape Energy talks continue at a subdued rate.

drilling scheduled

Lakes and Cape Energy are not proceeding with the July 2008 non-binding terms sheet, citing the global financial crisis. Talks continue on jointly developing Wombat and Golden Beach in some other way. Ends the merger plan announced in July.

material agreement termination

Gaffney Cline's independent assessment puts Wombat gas in place at 700 bcf (P50) and 2C contingent resource at 293 bcf. This is the first formal resource figure, updating the 535.4 bcf estimate of 2006. A separate valuation gives $50m-$88m for the 2C case; shares trade at 0.4c.

resource reserve update

Lakes signs a non-binding terms sheet to merge with Cape Energy SA, owner of the offshore Golden Beach gas project near its Wombat and Trifon fields. Structure is shares and cash, keeping Lakes listed. A definitive agreement is targeted for mid-September 2008.

business combination

Letter says early 3D work shows updip Wombat potential 300 m above Wombat-2 over about 3.3 km, so gas in place may have risen. No new estimate is given; the July 2006 figure was 535.4 bcf. Wombat-4 depends on the capital raising. Chairman warns low market value leaves Lakes open to takeover.

resource reserve update

Preliminary 3D seismic interpretation suggests earlier Wombat wells sit well down-dip of a Strzelecki high, with several new drilling targets outlined. Lakes wants to drill soon, with rig timing subject to the share purchase plan. Preliminary, not a volume booking.

resource reserve update

Share purchase plan: existing holders may buy up to 1 million shares ($5,000) at 0.5 cents, about a 17% discount, closing 23 May 2008. This is half the 1-cent rights issue price. The chairman's letter says the Gippsland program has been a constant drain on shareholders.

capital raising announcement

Alberton-1 reached 998 m and was plugged and abandoned 22 February. Logs suggest hydrocarbons below 700 m, hinting at tight gas. Napier High-1 is abandoned for now until a retention lease is granted. Wombat 3D shoot is complete, with processing due in 4–5 weeks.

drilling result

Lakes buys Poolowanna Petroleum, whose only asset is Northern Territory permit EP 142, for 25 million shares. Two earlier wells there had oil shows. Lakes will review past wells and study the permit. This is a new area for the company.

asset acquisition disposition

Lakes has acquired Otway Basin exploration permit PEP 169, north of Port Campbell and next to a producing gas field, from Sweetpea Petroleum, a PetroHunter subsidiary. No price is given.

asset acquisition disposition

Greenearth Energy's IPO closed with commitments meeting the $10 million minimum. Allotment was expected on 24 January 2008 and ASX listing in early February, and Lakes said it backed Greenearth's formation and capital raising.

capital raising announcement

Greenearth Energy lodges a prospectus for a $15m IPO (minimum $10m, up to $5m oversubscriptions), with $8m priority for Lakes and Victoria Petroleum shareholders. Closes 14 December 2007. Lakes signed an agreement to share drilling and data costs.

capital raising announcement

Lakes sues Century Energy Services in the Queensland Supreme Court for $1,091,297 over the Boola Boola-2 stuck drill string, blaming the mud pumps running out of fuel. It is also defending Century's $244,072 claim for fees.

other

Rights issue closed with about $3.84m of applications, well short of the $9.34m maximum; the shortfall can be placed at not less than 1 cent. Lakes scales back: it will shoot 3D seismic over Wombat and Steele and drill Wombat-4 around end Q1 2008 rather than rework old Wombat wells.

capital raising announcement

Lakes launches a 1-for-3 non-renounceable rights issue at 1 cent, raising up to $9,340,868 if fully subscribed. Funds go to finishing Alberton-1, drilling Napier High-1 and Wombat-4, fracturing older wells, and working capital to June 2008. The price is below the 1.2c placement.

capital raising announcement

Alberton-1 in PEP 158 began drilling on 17 July 2007 and was at 11 m, setting surface casing. Coring is planned from about 110 m. This is the third well of the four-well programme.

drilling spud

Boola Boola-2 stopped at 1,887 m when the drill string stuck, after mud pumps ran out of fuel. The lower string was severed for logging, and the well may be re-entered later. Lakes has earned its extra 25%, reaching 75% of PEP 166. The rig moves to Alberton-1.

drilling result

Lakes places 323,208,333 shares at 1.2c to raise $3,878,500 before brokerage, for the current drilling programme. The price is below the 1.5c SPP and PetroHunter prices, and the cash arrives as the PetroHunter money has fallen away.

capital raising announcement

Boola Boola-2 spudded 2 June 2007 and was at 576 m, targeting 1,500 m. It seeks the organic-rich shale seen at Hazelwood-1, which was over-mature there. Lakes also terminated the PetroHunter agreement because settlement was late, and will renegotiate.

drilling spud

Hazelwood-1 reached 2,081 m. The Strzelecki was mostly claystone with weaker reservoir rock than elsewhere, but a 260 m organic-rich shale at about 1,820 m gave continuous gas readings. PetroHunter's US financing is delayed, so the US$3m is now due before end of May.

drilling result

Greenearth Energy, the geothermal venture Lakes co-founded with Victoria Petroleum, wins two Victorian geothermal permits (GEP 12 and 13) covering the Latrobe Valley. Lakes describes itself as 30% owner. Greenearth plans to raise capital later this year. Trifon-2 hot water flowed at about 90°C.

regulatory community update

Lakes and PetroHunter sign the agreement first announced in November 2006: PetroHunter earns 33⅓% for US$7m, subscribes US$3m at 1.5c, with options on two further 16⅔% tranches of US$10m each. The US$3m is expected before the end of April.

farm in farm out completion

Lakes' Shareholder Share Purchase Plan closed on 30 March 2007 with $3,558,668.39 raised. Shares were to be allotted once funds cleared.

capital raising announcement

Hazelwood-1 spudded on 24 March 2007 and was at 513 m. It tests tight gas in the Strzelecki and the Rintouls Sandstone. Lakes holds 50% of PEP 166 and earns another 25% by fully funding this well and Boola Boola.

drilling spud

Two retention leases are granted, resolving the long wait on the PEP 157 and 155 applications and removing a key condition of the PetroHunter farm-out. PetroHunter sign-off is expected mid-March, and Hazelwood-1 top hole is being drilled.

regulatory community update

Lakes launches a four-well programme for the first half of 2007: Hazelwood-1, Boola Boola-2, Napier High-1 and Alberton-1. It expects retention leases within weeks and PetroHunter due diligence by early March. A share purchase plan at 1.5c, capped at $1,400 each and $5m in total, is offered.

drilling scheduled

Lakes has an option from AusAm to lift its PEP 166 interest from 50% to 75% by funding two wells. Hazelwood-1 is expected early in the New Year with a rig contracted; Boola Boola is undated. The letter also restates the PetroHunter deal.

drilling scheduled

Lakes agreed with PetroHunter Energy to jointly develop its Gippsland and Otway permits. PetroHunter earns 33⅓% by spending US$7m, subscribes US$3m ($4m) for shares at 1.5c, and has options on two further 16⅔% tranches of US$10m each. Subject to due diligence and retention leases. This is the partner the Sinopec talks sought.

farm in farm out agreement

Operator Victoria Petroleum says the Eagle North-1 workover is abandoned: the stuck production valve and guns could not be retrieved, so the 72 m of cased pay stays untested. Partners will plan a future re-entry and sidetrack instead. Lakes holds 15%.

drilling result

A workover rig reached Eagle North-1 and found the perforating guns appear not to have fired in the first test, so the cased 72 m remains untested. Fourteen days of cleanout come first, then a new gun run. Lakes holds 15%.

drilling progress report

Lakes and Victoria Petroleum will each take a one-third stake in new company Greenearth Energy, initially capitalised at $750,000, to apply for Victorian geothermal permits in October. A prospectus is expected in early 2007. This follows Lakes' earlier stated geothermal intent.

business combination

Lakes offers shareholders a Share Purchase Plan at 1.5 cents per share, up to $3,600 each, closing 26 July. The first $1m is underwritten by Intersuisse for a 6% fee. Funds go to the PEP 163 seismic, PEP 158 wells, Eagle North-1 costs, fracture stimulation and Hunters Lane.

capital raising announcement

Lakes placed 75 million shares at 1.8 cents to raise $1.35 million, with 25 million options at 1.8c expiring June 2007. Funds cover Eagle North-1 cost overruns, Hunters Lane-1 re-entry, Trifon-2 and North Seaspray-3 testing, and seismic in PEP 163/164. Follows the 2c placement earlier in 2006.

capital raising announcement

Lakes says Eagle North-1 costs have 'blown out', with re-entry and testing expected in 10-14 days. Sinopec due diligence continues, and an independent report suggests up to 536 bcf gas in place at Wombat, 375 bcf at Gangell. Lakes stresses these are uncertain, not reserves.

investor presentation

Lakes signed a non-binding memorandum of understanding with Sinopec's East China Petroleum Bureau covering its onshore Gippsland acreage. Commercial negotiations start once technical due diligence is done. This follows the April talks; no binding deal or terms yet.

material agreement

Lakes says it has held preliminary talks with China's Sinopec, which is sending a delegation to assess its Gippsland tight gas projects. It is applying for a retention lease over much of PEP 157 and plans to reopen Hunters Lane-1. No binding deal yet.

material agreement

Loy Yang-2 finished at 1,443 m; a test over 1,410-1,443 m recovered a little gas with water. Lakes says the well confirmed tight gas and free oil in the Strzelecki Group, but fracturing is delayed by equipment availability. Lakes says it has spent over $30 million on the project.

drilling result

Eagle North-1's vertical test failed to get oil flowing: only about 400cc of crude recovered, and Sun infers the perforations likely did not connect the oil sands to the well. The joint venture unanimously agreed to drill a 90-150 m horizontal lateral instead.

well test result

Operator says Eagle North-1 logs indicate oil saturation over a 21-metre interval (4,136-4,157 m) with 7 metres net pay, similar to Mary Bellocchi-1. The well will be cased and tested over about 8 days. A positive early sign for Lakes' 15%, still to be tested.

drilling result

Lakes started drilling Loy Yang-2 in PEP 166, targeting tight gas zones seen in Loy Yang-1A, to about 1,200 metres in roughly 20 days. Lakes funds the well and fracture stimulation at 100%, lifting its interest in the Loy Yang Block to 75%.

drilling spud

Lakes plans Loy Yang-2 in PEP 166, Gippsland, for mid-February, to re-test gas seen in the 1994 Loy Yang-1A well. It will earn 25% more (to 75%) from Ausam by paying 100% of the well, funded by a 50 million share placement at 2 cents.

drilling scheduled