Past year: ▼ 83%(23.5c – 1.52 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
26 Apr 2006material agreement▲ GoodMajor
Lakes says it has held preliminary talks with China's Sinopec, which is sending a delegation to assess its Gippsland tight gas projects. It is applying for a retention lease over much of PEP 157 and plans to reopen Hunters Lane-1. No binding deal yet.
18 Apr 2006drilling progress report▲ Good
Sun Resources says the Eagle North-1 sidetrack landed in the target Gatchell sand at 4,255 m, with about 30 m of good oil shows so far. A 3¾ inch lateral to 4,600 m and a test are planned. No flow result yet; Lakes holds 15%.
18 Apr 2006drilling progress report▲ Good
Operator Victoria Petroleum says 4½ inch casing is set at 4,281 m after good oil shows from 4,255 m. A roughly 320 m lateral comes next, with up to 1,000 bopd anticipated if successful. Largely repeats Sun's same-day update; Lakes holds 15%.
18 Apr 2006drilling progress report▲ Good
Eagle North-1 horizontal well reached 4,272 m and encountered good oil shows in the target Gatchell sand from 4,255 m. The operator will drill to 4,293 m, then run a 4½ inch liner before the lateral. No flow test yet; Lakes holds 15%.
31 Mar 2006drilling progress report▼ Bad
After continued mechanical problems and deteriorating hole, the Eagle North-1 operator paused, then milled a new window at 4,028 m and started a new 6-inch hole (2H) with a conservative medium-radius curve. Lateral target is 320 m; the first horizontal attempt was effectively abandoned.
31 Mar 2006drilling progress report● Neutral
Operator confirms a revised Eagle North-1 horizontal plan: new sidetrack from 4,028 m, medium-radius curve, 4½ inch liner, then a 320 m lateral to within 30 m of Mary Bellocchi-1. Program is planned to take 15 days; Lakes holds 15%.
21 Mar 2006drilling progress report▼ Bad
Sun Resources says Eagle North-1 horizontal drilling was delayed by mud motor, MWD tool and mud circulation problems; it was still at 4,131 m. A roughly 300 m lateral and drill stem test remain planned. Lakes holds 15%.
21 Mar 2006drilling progress report▼ Bad
Operator Victoria Petroleum repeats the Eagle North-1 horizontal delay: downhole mechanical and mud circulation problems, still at 4,131 m. A roughly 300 m lateral is still planned, with up to 1,000 bopd anticipated if successful. Duplicates Sun's same-day update.
20 Mar 2006drilling result▲ GoodMajor
Loy Yang-2 finished at 1,443 m; a test over 1,410-1,443 m recovered a little gas with water. Lakes says the well confirmed tight gas and free oil in the Strzelecki Group, but fracturing is delayed by equipment availability. Lakes says it has spent over $30 million on the project.
17 Mar 2006capital raising announcement● Neutral
Loy Yang-2 reached total depth of 1,443 m and is being logged ahead of a third drill stem test. Lakes also says a $1 million placement of 50 million shares at 2 cents was raised, to fund deepening and testing and extra Eagle North-1 costs.
What it means for a shareholder
50.0m new shares at A$0.020 to raise about A$1.0m. That's 2.6% dilution: every existing holder's slice gets 2.6% smaller. If you held A$1,000 of shares (50,000 at the issue price), your slice goes from 0.00266% to 0.00259% of the company. To keep it you'd need 1,330 more shares - about A$27 at the issue price.
Create a free account to see this worked out for your own holding.
16 Mar 2006drilling progress report● Neutral
Loy Yang-2 was at 1,385 m, so it was deepened beyond the original 1,200 m plan. Weak oil fluorescence was seen in most fractures, especially below 1,328 m, with gas peaks of up to 84 units.
15 Mar 2006drilling progress report● Neutral
Loy Yang-2 reached 1,185 m with gas up to 84 units and intermittent oil fluorescence from 1,152 m. Lakes is considering deepening the well to 1,400 m to better understand the shows.
14 Mar 2006drilling progress report● Neutral
Loy Yang-2 was at 1,075 m with further gas, peaking at 46 units at 1,065 m. Drilling continues to the planned 1,200 m, then logging and side-wall cores.
13 Mar 2006drilling progress report● Neutral
Sun Resources says Eagle North-1 horizontal drilling resumed after rig mechanical problems, at 4,131 m, still building the curve into the target sands. A drill stem test will follow the lateral. No flow result yet for Lakes' 15%.
13 Mar 2006drilling progress report● Neutral
Loy Yang-2 reached 924 m with continuing background gas. An oil show at 874-877 m was tested over 872.45-882 m and recovered water, thought to come from a fracture. Drilling continues toward the 1,200 m target.
10 Mar 2006drilling progress report● Neutral
Loy Yang-2 was drilling at 497 m after cutting a seven-metre second core, in which oil fluorescence was seen. No test result yet.
9 Mar 2006drilling progress report● Neutral
Loy Yang-2 at 450 m found an oil show at 446-448 m, but a drill stem test over 440-450 m recovered only water. The text describes the cut as weak. A second core follows before drilling ahead.
8 Mar 2006drilling progress report● Neutral
Loy Yang-2 was at 423 m, with the first core cut over 415-423 m to assess porosity and permeability. A second core is planned near 476 m. Lakes continues to fund 100% for 75% of the Loy Yang Block.
7 Mar 2006drilling spud● Neutral
Operator Victoria Petroleum says horizontal drilling began 7 March at Eagle North-1 after the failed vertical test, aiming at the oil sands near Mary Bellocchi-1. Drilling is expected to finish in about ten days; up to 1,000 bopd is anticipated if successful. Lakes holds 15%.
7 Mar 2006drilling progress report▲ Good
Loy Yang-2 reached 307 m, entering the Strzelecki Formation at 220 m with gas recorded from its top, cuttings gas up to 1,050 ppm. An early encouraging sign; the target depth is about 1,200 m and no result yet.
7 Mar 2006well test result▼ BadMajor
Eagle North-1's vertical test failed to get oil flowing: only about 400cc of crude recovered, and Sun infers the perforations likely did not connect the oil sands to the well. The joint venture unanimously agreed to drill a 90-150 m horizontal lateral instead.
6 Mar 2006drilling progress report● Neutral
Lakes says the Hunt rig is on site at Loy Yang-2 at 220 m, with drilling resuming toward about 1,200 m. The well tests gas and oil indications seen in Loy Yang-1 (1994); success would upgrade the Baragwanath Anticline.
3 Mar 2006drilling progress report● Neutral
Sun Resources says Eagle North-1 unloading with nitrogen began, recovering only about 400cc of crude; flow has not yet been established. Further update after 7 March. No flow result yet for Lakes' 15%.
1 Mar 2006half year report▼ Bad
Lakes reports a loss of $1,653,142 for the half-year to 31 December 2005, after drilling in PEP 157, PEP 155 Marlo, PEP 163 and VIC/P47. Patrobus-1 and Banjo-1A showed no visible hydrocarbons. PEP 156 expired 16 February 2006; Loy Yang-2 is sole-risked.
28 Feb 2006drilling progress report● Neutral
Lakes reports Loy Yang-2's top casing is set at 216 m and the Hunt rig is moving on to drill to about 1,200 m. Lakes funds 100% of drilling and fracture stimulation for 75% of the Loy Yang Block.
28 Feb 2006drilling progress report● Neutral
First Australian Resources repeats the operator's 27 February Eagle North-1 update: perforated, about five days of preparation before flow test. Also reports its Louisiana SL328 #8 well drilling below 8,300 feet. No new Eagle result.
27 Feb 2006drilling progress report● Neutral
Sun Resources says Eagle North-1 was perforated over 20 m and testing began 26 February; the well was being checked before unloading fluids to start oil flow. Results are promised at the end of the week; none yet.
27 Feb 2006drilling progress report● Neutral
Operator says Eagle North-1 was perforated at 4,142.8-4,163.0 m and about five more days are needed to prepare for the oil flow test, using nitrogen assistance. Results are expected at the end of the week; no flow yet.
23 Feb 2006drilling progress report● Neutral
Sun Resources says Eagle North-1 testing should start about 24-25 February, perforating 4,143.7-4,163.6 m for a five-day flow test. If flow is adequate, a 300 m horizontal leg follows. Test result still pending for Lakes' 15%.
21 Feb 2006drilling progress report● Neutral
Operator re-issues its 20 February Eagle North-1 update a day later: casing cemented at 4,217 m, about four more days of preparation before flow testing, up to 13.4 m net pay. No new information for Lakes' 15%.
