12 June 2007drilling progress report● Neutral
Boola Boola-2 is at 1,116 m and drilling ahead. No new results.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
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 2007quarterly activities report● Neutral
Quarterly report to 31 March 2007 records the PRL 2 and PRL 3 retention lease grants (10 years each) and the PetroHunter agreement, with the US$3m expected by end of May. Napier and Alberton wells are planned for the second quarter. Nothing substantially new.
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.
9 Jan 2007quarterly activities report● Neutral
Quarterly report to 31 December 2006: effort went into due diligence for the PetroHunter deal, which still depends on the PEP 157 and 158 retention leases. Napier and Alberton wells are planned for early 2007 and Hazelwood-1 early in the New Year. Lakes also took an option on EP 141 in the Georgina Basin.
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.
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.
25 Oct 2006quarterly activities report● Neutral
Quarterly report to 30 September 2006: the PEP 157 retention lease is still awaited, and delays are hurting joint venture talks. A US review says re-fracturing Wombat-2 could lift flow from 680,000 to an estimated 5.67 million cubic feet a day. Planning continues for possible PEP 158 wells.
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.