Past year: ▼ 83%(23.5c – 1.52 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
14 Nov 2006farm in farm out agreement▲ GoodMajor
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.
23 Oct 2006annual report● Neutral
The 2006 annual report calls the year one of consolidation, with over $32m spent on Victorian tight gas. The PEP 157 retention lease application is still awaited and the Gippsland permits expire in 2006 unless converted. It highlights the Halliburton study and cased Loy Yang-2 and Boundary Creek-2.
23 Oct 2006annual report● Neutral
Financial notes to the 2006 annual report show $23.6m of deferred costs for PEP 157 and $2.1m for PEP 155. These would be written off if the retention lease applications fail, which makes those pending decisions important to the accounts.
18 Oct 2006drilling result▼ Bad
Sun Resources repeats that the Eagle North-1 workover failed to free the damaged production valve at 3,963 m, so the well is being suspended for a future sidetrack. A new operator and partner will be sought, and Sun is weighing whether to farm down. Lakes holds 15%.
18 Oct 2006drilling result▼ BadMajor
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%.
21 Sept 2006joint venture update● Neutral
Victoria Petroleum confirms it now holds a one-third stake in Greenearth Energy, alongside Lakes, completing the venture announced in July. Greenearth starts with $750,000 and will apply for Victorian geothermal permits.
20 Sept 2006annual report● Neutral
Lakes Oil's 2006 financial report for the year to 30 June lists directors Annells, Dunn, Lawrence and Syme, and records Robert Love leaving as secretary/CFO on 27 July and Raymond South joining on 30 August. The visible text carries no financial figures.
19 Sept 2006drilling progress report▼ BadMajor
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%.
19 Sept 2006drilling progress report▼ Bad
Sun Resources repeats that the Eagle North-1 workover rig began on 18 September and the perforating guns appear not to have fired. It expects a further hiatus before retesting, while the cause is established. Lakes holds 15%.
18 Sept 2006investor presentation● Neutral
Presentation to the 18 September general meeting restating the Victorian permits and Wombat and Loy Yang production forecasts. It notes plans for 3D seismic over Wombat/Trifon. No new results or decisions in the text provided.
1 Sept 2006director officer appointment● Neutral
Raymond E South has been appointed Company Secretary of Lakes Oil, effective immediately. The text does not say what this means for Robert Love, previously company secretary and CFO.
26 July 2006capital raising announcement● Neutral
Lakes extended its Share Purchase Plan to 9 August, with over $2.3m received so far at 1.5 cents. It says the Eagle North-1 workover rig is scheduled to return mid-August; the well remains untested.
21 July 2006business combination● NeutralMajor
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.
28 June 2006capital raising announcement● NeutralMajor
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.
26 June 2006investor presentation● Neutral
Lakes' shareholder brochure restates its tight gas story: over $30m spent in PEP 157, a retention lease application over about 75% of it, and Sinopec due diligence with negotiations expected July/August. The next stage needs an estimated $15-20m, beyond its means; it hopes partners will fund it.
8 June 2006drilling progress report▼ Bad
Operator says securing a completion rig and coiled tubing unit for Eagle North-1 is still continuing, delayed by heavy equipment demand around Bakersfield. No results yet; a release will follow testing. Lakes holds 15%. Repeats the Sun Resources update.
8 June 2006drilling progress report▼ Bad
Sun Resources relays that Eagle North-1 testing is delayed because a completion rig and coiled tubing unit are not yet available together, owing to heavy demand in the Bakersfield area. No flow result yet; Lakes holds 15%.
2 June 2006capital raising announcement● NeutralMajor
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.
What it means for a shareholder
75.0m new shares at A$0.018 to raise about A$1.4m. That's 3.7% dilution: every existing holder's slice gets 3.7% smaller. If you held A$1,000 of shares (55,556 at the issue price), your slice goes from 0.00288% to 0.00277% of the company. To keep it you'd need 2,159 more shares - about A$39 at the issue price.
Create a free account to see this worked out for your own holding.
1 June 2006investor presentation● NeutralMajor
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.
1 June 2006director officer appointment● Neutral
James Syme, a retired Victorian Government Solicitor, has joined the Lakes board. He was previously a director from 1985 to 1997, when the company first listed.
23 May 2006drilling progress report● Neutral
Operator Victoria Petroleum says Eagle North-1 testing continues with results 'encouraging' but no flow figures. A completion rig is due on site this coming week, then a coiled tubing unit. Up to 1,000 bopd is hoped; Lakes holds 15%.
23 May 2006drilling progress report● Neutral
Sun Resources reports 'encouraging' Eagle North-1 test results, without figures. The drilling rig was released on 20 May and a cheaper completion rig is due next week, then a coiled tubing unit. No flow rates yet; Lakes holds 15%.
16 May 2006drilling progress report● Neutral
Sun Resources says the cased section of the Eagle North-1 lateral was perforated and testing is under way. Testing is slow because no coiled tubing unit or nitrogen is available. No flow result yet; Lakes holds 15%.
16 May 2006drilling progress report● Neutral
Operator says production testing continues on the 177 m Eagle North-1 lateral, with no results yet. Results will be announced when testing is complete. Lakes holds 15%.
8 May 2006drilling progress report● Neutral
Operator confirms Eagle North-1 drilling ended at 4,386 m because of running sands, and no slotted liner was run. A production test of 177 m is being prepared, taking four to seven days. Up to 1,000 bopd is hoped; Lakes holds 15%.
8 May 2006drilling progress report● Neutral
Sun Resources relayed that drilling of the Eagle North-1 horizontal well ended at 4,386 m because of running sands. A production test of 177 m of lower Gatchell sand was being prepared, expected to take about four days. Lakes holds 15%.
5 May 2006material agreement▲ GoodMajor
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.
27 Apr 2006drilling progress report● Neutral
Sun Resources says Eagle North-1 had survey tool problems, forcing a restart of the lateral at 4,285 m. Oil inflow occurred at 4,303 m and mud weight is being raised. Good oil-show sand is about 6 m so far; Lakes holds 15%.
27 Apr 2006drilling progress report▲ Good
Operator reports good oil shows over 11 m of the Eagle North-1 lateral to 4,308 m, with oil inflow on a flow check and gas up to 550 units. The 320 m lateral and slotted liner remain planned. Lakes holds 15%.
27 Apr 2006drilling progress report▲ Good
Lakes relays the operator's 26 April Eagle North-1 report: good oil shows from 4,297 to 4,308 m with oil inflow on a flow check. Drilling of the 320 m lateral continues. Lakes holds 15%. Repeats the operator's announcement.
