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.
What it means for a shareholder
1.0m new shares at A$0.005 to raise about A$5,000. That's 0.0311% dilution: every existing holder's slice gets 0.0311% smaller. If you held A$1,000 of shares (200,000 at the issue price), your slice goes from 0.00622% to 0.00622% of the company. To keep it you'd need 62 more shares - about A$0 at the issue price.
Half-year to 31 December 2007: loss of $3,405,791. Greenearth listed 4 February 2008 and Lakes with related parties holds 22.07%. The Century litigation continues. Wombat-4 is now planned mid-2008, depending on rig and funding.
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.
15 Feb 2008asset acquisition disposition● NeutralMajor
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.
Moving sands at Napier High-1 prompt Lakes to move the rig to Alberton-1 and deepen it to 1,000 m, while a deeper surface casing is installed at Napier. Alberton-1 had found highly biodegraded oil above the volcanics.
23 Jan 2008asset acquisition disposition▲ GoodMajor
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.
21 Jan 2008capital raising announcement▲ GoodMajor
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.
Napier High-1 has started drilling in PEP 158, with Alberton-1 to be re-entered afterwards and drilled to 1,200 m. The first onshore Gippsland 3D seismic over Wombat is due to start 23 January.
Chairman's reminder to Lakes holders that the Greenearth priority offer (30 cents a share, minimum $2,100) closes 14 December 2007. Lakes says it remains focused on petroleum exploration. Administrative.
AGM presentation repeats known plans: Napier High-1 now, Alberton-1 re-entry in January 2008, a 30 sq km Wombat 3D survey costing an estimated $1.6m, and Wombat-4 in Q2 2008. No new results.
Drilltec is on site at Napier High-1 (PEP 158) drilling the top hole, with the rig due by month-end; the well targets about 1,000 m. Alberton-1 re-entry follows. The Wombat 3D seismic is now set for January 2008 and Wombat-4 slips to Q2 2008.
Chairman's letter sends Lakes holders their priority form for the Greenearth IPO ($8m reserved, offer closes 14 December 2007). Repeats the prospectus facts and the cost-sharing agreement; no new information.
Victoria Petroleum restates the Greenearth IPO: $15m at 30 cents a share (minimum $10m), with $8m priority for Lakes and Victoria Petroleum holders at the 12 November record date. Greenearth has spent about $1.8m on heat data since its May 2007 permits.
2 Nov 2007capital raising announcement● NeutralMajor
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.
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.
2007 annual report calls the year mixed. It reports PRL 2 and 3 granted, PEP 166 interest raised from 50% to 75%, and Boola Boola-2 failing. It lists Alberton-1 biodegraded oil, the plan for 3D seismic and Wombat-4, and a Greenearth float.
Greenearth Energy, one-third owned by Lakes, signs a non-binding MOU with RMIT to develop a plan for geothermal technologies, including electricity and heating. It may seek government grants. Early-stage.
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.
Alberton-1 core analyses remain confusing, from biodegraded oil to carbon only. The well stopped at 270 m because of the unsuitable rig, and Napier High-1 may now be drilled first. The new rig is expected in November.
The closing date of the 1-for-3 rights issue at 1 cent per share was extended 14 days to 5 October 2007. More than $2.1m had been received so far, and the share price was 1.1 cents on 19 September.
Lakes and Victoria Petroleum, each holding a third of Greenearth Energy, announce Simon Molesworth AM QC as Greenearth's non-executive chairman. Greenearth is working towards a public float later in the year.
Supplementary prospectus: Tolhurst will place up to $2m of shares at 1 cent, less shares taken up in the rights issue, for a $100,000 fee. Tolhurst can terminate if the Small Ordinaries index falls 10% or more.
20 Aug 2007capital raising announcement● NeutralMajor
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.
Alberton-1 is cased at 258 m and drilling has stopped because the rig is unsuitable; Drilltec's new rig is expected in 6–8 weeks. About 73 net metres of sand with apparent bio-degraded oil were seen, but lab results are inconclusive.
Chairman's presentation repeats the tight gas strategy: finish the four-well programme, then fracture Wombat wells. Modelled Wombat-2 rates are 2 million cf/d initial after a 600 ft frac. Estimates $3–4m cost per well and $8.06m cumulative revenue over five years. No new results.
Second part of the August presentation covers Greenearth Energy's geothermal permits and the Trifon-2 well, which flowed about 90°C water. Notes Alberton-1 is being drilled. Repeats known facts.
Shareholder letter to accompany a DVD and newsletter. Says PetroHunter failed to provide its first US$10m, that the 1.2c placement and February plan funded the four-well programme, and restates the tight gas strategy of fracturing Wombat wells. Repeats known facts.
