Past year: ▼ 83%(23.5c – 1.52 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
24 July 2007drilling result▲ Good
Alberton-1 in PEP 158 cored loose Latrobe sand at 109–112.57 m showing what appears to be bio-degraded oil, with a faint odour and moderate cut. Lab testing follows; Wombat-3 is to be reopened for testing next week. Shallow shows only, not a discovery.
18 July 2007drilling spud● NeutralMajor
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.
2 July 2007drilling result▼ BadMajor
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.
25 June 2007drilling progress report● Neutral
Boola Boola-2 is at 1,821 m, deepened to find a permeable reservoir and good source rock. Greenearth has agreed to meet some of the deepening costs for geothermal data. No hydrocarbon results yet.
19 June 2007drilling progress report● Neutral
Boola Boola-2 passed its planned 1,500 m depth, reaching 1,509 m, and the well will be extended to 1,700 m. No results reported.
18 June 2007drilling progress report● Neutral
Boola Boola-2 is at 1,444 m and drilling ahead. No new results.
12 June 2007drilling progress report● Neutral
Boola Boola-2 is at 1,116 m and drilling ahead. No new results.
8 June 2007capital raising announcement● NeutralMajor
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.
What it means for a shareholder
323m new shares at A$0.012 to raise about A$3.9m. That's 12% dilution: every existing holder's slice gets 12% smaller. If you held A$1,000 of shares (83,333 at the issue price), your slice goes from 0.00335% to 0.00297% of the company. To keep it you'd need 10,843 more shares - about A$130 at the issue price.
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8 June 2007drilling progress report● Neutral
Boola Boola-2 is at 745 m and changing the bit. No new results.
4 June 2007drilling spud▼ BadMajor
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.
23 May 2007drilling scheduled● Neutral
The Century rig moves from Hazelwood to Boola Boola-2, with drilling due late the following week to a planned 1,500 m. Lakes says the oil-capable shale found at Hazelwood-1 encouraged this well, which targets the lower Strzelecki and Rintouls Creek.
30 Apr 2007drilling result● NeutralMajor
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.
26 Apr 2007regulatory community update● Neutral
Victoria Petroleum repeats the Greenearth geothermal permit award, stating the shareholdings as one-third each for Lakes, Victoria Petroleum and private investors. Nothing new beyond Lakes' own announcement.
26 Apr 2007regulatory community update▲ GoodMajor
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.
23 Apr 2007drilling progress report● Neutral
Hazelwood-1 is at 1,939 m and drilling ahead. A 3 m core was cut at 1,886-1,889 m. No results given yet.
20 Apr 2007farm in farm out completion▲ GoodMajor
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.
16 Apr 2007drilling progress report● Neutral
Hazelwood-1 is drilling ahead at 1,623 m. No new results.
10 Apr 2007drilling progress report● Neutral
Hazelwood-1 is at 1,298 m after 9 5/8 inch casing was set; drilling resumes. No new results.
4 Apr 2007capital raising announcement▲ GoodMajor
Lakes' Shareholder Share Purchase Plan closed on 30 March 2007 with $3,558,668.39 raised. Shares were to be allotted once funds cleared.
3 Apr 2007drilling progress report● Neutral
Hazelwood-1 is drilling ahead at 988 m. No new results.
26 Mar 2007drilling spud● NeutralMajor
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.
20 Mar 2007drilling scheduled● Neutral
The Century rig is on site at Hazelwood-1, with drilling due to start 22 March. PetroHunter due diligence is taking longer than expected and is now expected in the first half of April. The share purchase plan closes 30 March.
9 Mar 2007half year report● Neutral
Half-year to 31 December 2006 shows a loss of $1,039,730. It confirms retention leases PRL 2 (PEP 157) and PRL 3 (PEP 155), each for 10 years, granted 27 February 2007, and the Marlo block to be relinquished. PetroHunter due diligence is now expected mid-March to early April.
1 Mar 2007regulatory community update▲ GoodMajor
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.
21 Feb 2007director officer appointment▲ Good
Melbourne merchant banker Barney Berold was appointed to the Lakes Oil board. He brings corporate advice and capital raising experience, and the chairman said it would help with the important drilling and fracturing programme ahead.
19 Feb 2007capital raising announcement● Neutral
Formal share purchase plan offer letter: up to $1,400 (93,333 shares) per holder at 1.5c, a 28.6% discount to the 9 February price. The first $2m is underwritten at a 5% fee, and the offer closes 30 March 2007. Funds go to the four-well programme and working capital.
What it means for a shareholder
93,333 new shares at A$0.015 to raise about A$1,400. That's 0.00419% dilution: every existing holder's slice gets 0.00419% smaller. If you held A$1,000 of shares (66,667 at the issue price), your slice goes from 0.00299% to 0.00299% of the company. To keep it you'd need 3 more shares - about A$0 at the issue price.
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16 Feb 2007admin correction● Neutral
Lakes corrects the amounts in its share purchase plan table: shares are 1.5c each, up to 93,333 shares for $1,400. Credit card payment is added, and underwriting now covers the first $3m rather than $2m.
6 Feb 2007drilling scheduled▲ GoodMajor
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.
22 Nov 2006investor presentation● Neutral
AGM presentation restates the PEP 155 and PEP 157 retention lease applications, about $31m spent on tight gas, the Hazelwood dome location, and the PetroHunter terms. No new results or decisions in the text.
16 Nov 2006drilling scheduled▲ GoodMajor
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.
