4 May 2012well test result● Neutral
Drill stem test 1 at Moreys-1 (1987-2005m) failed as the testing tool blocked, so no result. Drilling continues, with a possible re-test after logging.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
3 May 2012drilling progress report● Neutral
Moreys-1 reached 2005m; a drill stem test is planned over 1989-1997m. No result yet.
2 May 2012drilling progress report▼ Bad
Moreys-1 at 1908m has passed through the Waarre C and B sands with no significant gas readings, a poor sign for the primary target. Drilling continues to test the Eumeralla Formation.
1 May 2012drilling progress report● Neutral
Moreys-1 at 1783m hit the Flaxmans Formation at 1760m, 11m low to prognosis, with rising background gas. Drilling on towards the Waarre C primary target.
30 Apr 2012drilling progress report● Neutral
Moreys-1 was at 1570m, drilling ahead towards the 1740m target interval. No new result.
26 Apr 2012drilling progress report● Neutral
Moreys-1 was at 735m, drilling ahead towards the first target at 1740m. No results yet.
20 Apr 2012drilling spud● NeutralMajor
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.
12 Apr 2012drilling scheduled▲ Good
Lakes and Armour plan to spud Moreys-1 in PEP 169 on 18 April 2012 with the rig on site; target depth 2000m, Waarre C at ~1740m. Armour funds the $2.5m well to earn 51%. Success could bring early cash flow, subject to gas sales agreements.
30 Mar 2012regulatory community update▲ Good
Subsidiary Commonwealth Mining was granted exploration licence EL5394 in the northern Latrobe Valley, to explore for coal and mineral sands. This is a result of the licence applications lodged in March 2011.
15 Mar 2012half year report● Neutral
Half-year to 31 Dec 2011 loss was $1,480,603, versus $1,566,113 a year earlier. Reports the Armour placement and option; Mather and Stubbs are directors from 1 Feb 2012. Fracturing of two PRL 2 wells still planned for 2012.
14 Mar 2012investor presentation● Neutral
General meeting presentation on the Armour-funded Moreys-1 well in PEP 169 (46 Bcf P50 recoverable, Hunt Rig 2 on site) and PEP 166/PRL 2 tight gas. Repeats Wombat-4 3.7 mmscfd estimate. Largely known facts.
7 Feb 2012director officer appointment● NeutralMajor
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.
20 Dec 2011joint venture update▲ Good
Beach signed a services contract with BJ Services for fracturing on Boundary Creek-2 and Wombat-4, with work expected to start at Boundary Creek-2 in January 2012. This firms up the long-delayed fracturing. Restates Beach can earn 33.3% for up to $33.5m and Somerton 16.7% for up to $16.5m.
5 Dec 2011farm in farm out agreement▲ Good
DGR Global says its subsidiary Armour Energy will buy 900m Lakes shares at 0.25c ($2.25m, 15%) and farm in to PEP 169 (Moreys well, 51%) and PEP 166 (up to $9m, 51%). Armour also gets a $30m PRL 2 option. Repeats Lakes' own 5 Dec terms; Armour's work starts end March 2012.
5 Dec 2011farm in farm out agreement▲ GoodMajor
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.
30 Nov 2011investor presentation● Neutral
Chairman's AGM presentation says Lakes has invested over $50m in Gippsland tight gas. It repeats Wombat 787 Bscf, Trifon 492 Bscf and Gangell 405 Bscf gas in place, and a Wombat-4 estimate of about 3.7 mmscfd after fracturing. Largely known facts.
31 Oct 2011quarterly activities report▲ GoodMajor
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.
31 Oct 2011annual report● Neutral
Annual report with chairman's letter citing difficulty raising capital and Beach's equipment delays to the Stage 1 farm-in work ($10m for up to 15%). Highlights the Yallourn North 1A core hole's oil shows, a planned follow-up core hole, and talks with a possible Holdgate-1 farminee.
30 Sept 2011annual report● Neutral
2011 statutory annual report for the year to 30 June 2011, with directors' report and accounts. The excerpt is truncated and gives no financial figures. Board unchanged: Annells, Berold, Lawrence and Syme, with Leslie Smith as CFO and secretary.
20 July 2011asset acquisition disposition▼ BadMajor
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.
18 July 2011resource reserve update● Neutral
Lakes reminds shareholders of its Gippsland gas, with Wombat-4 fracturing by Beach and Somerton now expected in Q4 2011. Restates 1,709 Bscf gas-in-place (Wombat 787 Bscf) and plans an outside assessment of undiscovered gas. Also plans a further core hole to the south.
1 June 2011capital raising announcement▼ BadMajor
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.
What it means for a shareholder
312m new shares at A$0.005 to raise about A$1.6m. That's 5.2% dilution: every existing holder's slice gets 5.2% smaller. If you held A$1,000 of shares (200,000 at the issue price), your slice goes from 0.0035% to 0.00332% of the company. To keep it you'd need 10,936 more shares - about A$55 at the issue price.
Create a free account to see this worked out for your own holding.
3 May 2011capital raising announcement● NeutralMajor
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.
29 Mar 2011regulatory community update▲ GoodMajor
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.
11 Mar 2011half year report▼ Bad
Half-year to December 2010: loss of $1,566,113, versus a $60,360 loss a year earlier, including a $190,033 investment loss. Reports Beach as PRL 2 operator, the Somerton deal, the PetroChina agreement and the Wombat-2 test. Wombat-4 fracturing planned later in 2011.
2 Feb 2011flow test result● Neutral
Beach recovered downhole gauges from Wombat-2 after the shut-in; the earlier two-week test averaged about 0.8 mmscfd from the 1,470m zone. Pressure data is being interpreted. This is the first activity under Beach's farm-in.
31 Jan 2011quarterly activities report▼ BadMajor
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.
13 Jan 2011other● Neutral
Lakes lodged its Securities Trading Policy under Listing Rule 12.9. It bars insiders trading in the two weeks before quarterly reports. Administrative; no business substance.
5 Jan 2011flow test result▲ GoodMajor
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.
29 Nov 2010investor presentation● Neutral
AGM presentation: 5.9bn shares including partly paid, price 0.6c, market cap about $34m. Cites PRL 2 gas in place of 1.68 tcf plus unquantified upside and a company-commissioned valuation of $104-217m. JV plans to fracture 9 Wombat-4 zones. Mostly known facts.