Past year: ▼ 83%(23.5c – 1.52 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
16 Nov 2009drilling result▲ GoodMajor
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.
9 Nov 2009drilling progress report▲ Good
Wombat-4 is at 2,404m with total depth extended from 2,000m to 2,500m. Numerous gas shows, some possibly with light oil or condensate, and the Latrobe appears hydrocarbon bearing. Lakes calls the results extremely encouraging; no test rates yet.
4 Nov 2009drilling result▲ GoodMajor
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.
30 Oct 2009quarterly activities report● Neutral
September quarter report: Wombat-4 spudded 17 October and was at 1,366m. Wombat-2 remedial work continues after the gas blockage, and North Seaspray-3 is suspended. Re-entries planned at Boundary Creek-2, Trifon-1 and Wombat-3.
29 Oct 2009drilling progress report▲ Good
Wombat-4 reached the top of the Strzelecki at 1,350m, where gas readings rose significantly, with hydrocarbons up to C5. Lakes will set 7-inch casing and run a drill stem test, and expects better flows than earlier Wombat wells.
26 Oct 2009annual report● Neutral
Annual report for 2009. The chairman says Lakes came through a challenging year in good shape and calls Wombat-4 probably its most significant well. It restates the Wombat-2 flow blockage and Wombat-3 oil. The extract is truncated and gives no financials.
26 Oct 2009drilling progress report● Neutral
Wombat-4 is at 1,204m. Elevated gas readings were seen in several Latrobe zones, but their significance is unknown until logs are run. Plan is to drill 20-30m into the Strzelecki, log, then case.
19 Oct 2009drilling spud▲ GoodMajor
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.
13 Oct 2009drilling progress report● Neutral
Wombat-4 rig is on site, two weeks late because of further approvals, with spud expected late that week. Lakes also offers staff 38m partly paid shares at 1.5c, and directors 150m on the same terms subject to AGM approval on 27 November.
2 Oct 2009admin correction● Neutral
Section 708A notice accompanying a new share issue (Appendix 3B), confirming the company is up to date with its reporting and disclosure obligations. Administrative; no new substance.
30 Sept 2009annual report● Neutral
Annual report for the year to 30 June 2009. The visible text covers only the corporate directory and director profiles; no financial figures are readable in the extract.
31 Aug 2009capital raising announcement▲ GoodMajor
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.
17 Aug 2009well test result▲ GoodMajor
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.
14 Aug 2009resource reserve update▲ GoodMajor
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.
31 July 2009quarterly activities report● Neutral
June quarter report: Wombat-2 re-frac peaked at 4.3 mmcfd, falling to about 1.3 mmcfd as frac fluid built up; Wombat-3 flowed oil; North Seaspray-3 clean-out continues. Restates the 683 bcf 2C total, the $1m placement and the rights issue underwritten to $3m.
29 July 2009capital raising announcement▼ Bad
Cover letter sending shareholders their rights issue forms; offer closes 21 August, $3m underwritten. Update: North Seaspray-3 suspended as the 2005 frac may have reached an aquifer. Wombat-4 is planned as a roughly 2,000m future production well.
27 July 2009regulatory community update● Neutral
Lakes welcomes Western Australia halving its tight gas royalty to 5%, calling it validation of tight gas. Restates over $40m spent in PRL 2 and Wombat-4 as the next step. No new Lakes results.
22 July 2009capital raising announcement● Neutral
Patersons Securities will underwrite the first $3m (300 million shares) of the roughly $11m rights issue, for a 5% commission. It can withdraw if the market index falls 10% or more. Maximum possible holding is 6.7%.
16 July 2009capital raising announcement● NeutralMajor
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.
16 July 2009capital raising announcement● Neutral
Formal notice of the 1-for-4 rights issue at 1 cent, up to 1,115,523,846 new shares and about $11m. Non-participating holders will be diluted. Not underwritten at this stage. Repeats the 16 July letter.
1 July 2009resource reserve update▲ GoodMajor
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.
25 June 2009investor presentation● Neutral
Conference presentation on Lakes' tight gas story, repeating known Wombat well results, the 1.635 tcf gas-in-place total and over $40m spent. No new results or figures.
22 June 2009drilling progress report● Neutral
Oil keeps flowing into Wombat-3 but gas and water from the upper zone impede measurement, so operations are suspended pending production tubing. Wombat-2 re-frac is due within two days, adding 180,000 lbs of proppant. North Seaspray-3 clean-out begins.
19 June 2009well test result▲ GoodMajor
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.
19 June 2009capital raising announcement● NeutralMajor
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.
What it means for a shareholder
200m new shares at A$0.005 to raise about A$1.0m. That's 4.5% dilution: every existing holder's slice gets 4.5% smaller. If you held A$1,000 of shares (200,000 at the issue price), your slice goes from 0.00469% to 0.00448% of the company. To keep it you'd need 9,385 more shares - about A$47 at the issue price.
Create a free account to see this worked out for your own holding.
10 June 2009drilling progress report● Neutral
Coiled tubing equipment has arrived at Wombat-3 to start the workover program. Frac equipment for Wombat-2 is due around 20 June to lift flow from the current 680,000 cubic feet per day. No new results yet.
12 May 2009drilling scheduled▼ BadMajor
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.
30 Apr 2009quarterly activities report● Neutral
March quarter: Lakes shifts to cheaper re-entry of Wombat-2, Wombat-3 and North Seaspray-3 instead of drilling Wombat-4. An initial flow test at North Seaspray-3 was done in early April. Gaffney Cline is assessing Trifon and Gangell, due in about two months.
3 Apr 2009price query● Neutral
ASX queried the rise in the share price from 0.3c to 0.5c. Lakes says it knows of no undisclosed news, pointing to market interest in unconventional gas and its Oct 2008 293 bcf 2C figure. It cites about $6m cash and liquid assets and a market value near $16m.
6 Mar 2009half year report● Neutral
Half-year to 31 Dec 2008: loss of $1,488,814. Cape Energy merger terms sheet confirmed dropped, talks continue on alternatives. Wombat-4 now planned mid-to-late 2009 (earlier: early 2009), subject to rig and funding; flow tests and fracturing of existing wells planned first half 2009.
