5 Mar 2021drilling scheduled● Neutral
Nangwarry-1 extended test slips again, now to mid-March 2021, with equipment mobilising 10 March, on further COVID delays. Three weeks on site. Resource estimate unchanged: 12.6 Bscf net best case.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
5 Feb 2021drilling scheduled● Neutral
Extended Nangwarry-1 production test, first planned for late 2020, is now set for mid-late February 2021 over three weeks. COVID restrictions on equipment and movement caused the delay. It aims to confirm the CO2 resource's quality, deliverability and size.
19 Jan 2021quarterly activities report● Neutral
December 2020 quarter: Lakes raised just over $3.1m in notes with a royalty, which it says was needed to attract investors given the suspension. $1.1m from Mather and Sleeman entities is a loan until shareholders approve. Shares remain suspended.
18 Jan 2021security holder rights change● Neutral
30.3m unlisted options at 0.5c lapsed on 8 January 2021. Capital structure now 33.68bn shares, 7.72bn convertible notes and 752.9m performance rights. No new issue.
13 Jan 2021admin correction● Neutral
Lakes lodged a revised 2020 annual report to fix a typographic error in the audit report; it says nothing else changed. The audit opinion text was not visible in the extract, so its nature is unconfirmed.
8 Jan 2021quarterly activities report● Neutral
Delayed March 2020 quarterly report, lodged 8 January 2021. Shares still suspended; four note tranches issued ($3.9m in total), plus a $515,000 Samuel Holdings loan at 15%. Victorian ban remains. Nothing new.
8 Jan 2021quarterly activities report● Neutral
Delayed June 2020 quarterly report, lodged 8 January 2021. Shares remain suspended. Five note tranches issued since Dec 2019 (latest 540,000 notes, $486,000, July 2020); $515,000 Samuel Holdings loan at 15%. Repeats known facts.
8 Jan 2021quarterly activities report● Neutral
Delayed September 2020 quarterly report, lodged 8 January 2021. Shares remain suspended despite funds raised. A $75,000 loan was received from BAM Opportunities Funds on 25 September 2020. Ban ends 30 June 2021; PRL 3 dispute continues.
29 Dec 2020half year report● Neutral
Delayed half-year report to 31 December 2019: profit of $247,584, driven by $1.73m of PACE grant income, versus a loss of $2.6m a year earlier. Working capital deficit widened to $2.08m from $547,120 at June 2019. Part of clearing the suspension.
29 Dec 2020annual report● Neutral
2020 annual report lodged, listing Wombat 329 Bcf contingent resource and Nangwarry 12.6 Bcf net recoverable CO2. Lakes holds a net 46.76% in PEL 155. Text is truncated, so the audit opinion and financials are not visible here.
29 Dec 2020annual report● Neutral
Appendix 4G corporate governance checklist lodged with the annual report. Points to the website governance statement. No new substance.
23 Dec 2020capital raising announcement● NeutralMajor
Lakes placed 2.28bn convertible notes raising $2.075m at 0.09c each, with a new royalty on PRL 2 and PEP 167, 169 and 175. A further $1.1m of notes goes to directors Mather and Sleeman as loan settlement, subject to shareholder approval. Aim is to show 12 months of funding for ASX.
5 Nov 2020regulatory community update▲ GoodMajor
PNG's Minister extended the term of PPL 560, which contains the Buna prospect, by three years to December 2025, compensating for time lost to the unlawful cancellation. This resolves the pending extension; Lakes is now planning a farm-out to fund drilling.
17 Sept 2020other● Neutral
Corporate update: Lakes is still working to get shares trading again and says about $4.8m has been raised since December 2019. A virtual general meeting on 22 September 2020 will refresh capacity to issue convertible notes. The 2020 annual report is still being completed and audited.
16 Sept 2020investor presentation● Neutral
Strategy deck: shares still suspended, 33.67bn shares and 4.96bn convertible notes on issue. Targets gas production in 2-3 years, with a further $3m to raise in 2020 and about $7m in 2021/22. Otway-1 and Wombat-5 drilling are tied to the ban ending mid-2021. Mostly repeats known facts.
31 Aug 2020resource reserve update▲ Good
Lakes reports the ERCE estimate of Nangwarry recoverable CO2: best case 25.1 Bscf gross (12.5-12.6 net to Lakes), range 7.8-82.1. Same estimate as Vintage's release (ref 3). Flow test planned later in 2020 to confirm deliverability and size.
31 Aug 2020resource reserve update▲ GoodMajor
Vintage announces an independent (ERCE) best-case 25.1 Bcf gross recoverable CO2 for Nangwarry (low 7.8, high 82.1), 12.6 Bcf net to each 50% partner. Gas column now about 90 m, up from the 65 m advised earlier; roughly 90% CO2.
25 Aug 2020material agreement▲ GoodMajor
Vintage (50% partner) announces a non-binding MOU with Supagas, which will fund preliminary design and costing of a food-grade CO2 processing facility for Nangwarry, in return for the chance to bid to develop or buy the gas. Extended flow test targeted late 2020, COVID permitting.
25 Aug 2020material agreement▲ Good
Lakes, as operator of the 50:50 PEL 155 venture, announces the same non-binding Supagas MOU: Supagas funds preliminary processing-plant design and costing for Nangwarry CO2. Extended Nangwarry-1 production test planned late 2020. Duplicates the Vintage release (ref 1).
13 July 2020capital raising announcement● Neutral
Lakes raised $486,000 through 540,000 more convertible notes on the earlier terms. Company Secretary Melanie Leydin resigned; Chairman Richard Ash takes over the role, with Leydin Freyer continuing as accounting provider.
8 Apr 2020other▼ BadMajor
Shares remain suspended and the half-year report is overdue. Convertible notes have raised $3.8m since December. Victoria extended its ban by a year, to mid-2021, though tenure terms reset to five years. Nangwarry-1 flow testing is planned around mid-year.
14 Feb 2020auditor change● Neutral
William Buck Audit replaced Pitcher Partners as auditor on 14 February 2020, after Pitcher resigned with ASIC consent. Lakes says it ran an audit tender. Relevant given ASX's demand for an unqualified audit opinion.
7 Feb 2020regulatory community update● Neutral
Lakes restates that the Victorian moratorium expires 30 June 2020 and that Wombat-5 is ready to drill. Wombat holds 329 Bscf contingent resource (2C-style 50% estimate), with the Trifon/Gangell fields adding about 280 Bscf. Mostly repeats known facts.
5 Feb 2020quarterly activities report▼ Bad
December quarter: shares remain suspended; ASX refused resumption despite the funding deal, and the underwriting depends on trading resuming. Convertible notes raised $600k and $940k in December. The Acuity collateral shares have not yet been placed. Text truncated.
16 Jan 2020drilling result▼ BadMajor
Gas samples from Nangwarry-1 show 92% and 89% CO2, not the expected outcome, undermining the earlier gas-column result. Lakes points to the Caroline-1 CO2 operation as a precedent and will still case and suspend the well for flow testing.
15 Jan 2020drilling result▲ GoodMajor
Logging confirmed a minimum 65 m gas column at the top of the Pretty Hill at Nangwarry-1. The lower interval could not be logged definitively. The well will be cased and suspended for flow testing; gas quality awaits sample analysis.
2 Jan 2020drilling result● NeutralMajor
Nangwarry-1 reached 4,300 m. The secondary Sawpit target was intersected but was not gas-bearing. Two potential gas intervals, each about 140 m thick, were found in the primary Pretty Hill target; logging is under way.
23 Dec 2019drilling progress report● Neutral
Nangwarry-1 reached 3,450 m, drilling through the Pretty Hill Formation, first met at about 2,940 m. Elevated gas readings across 140 m need logging to assess significance. Second target Sawpit expected by week's end.
19 Dec 2019agm notice● Neutral
AGM addresses: chairman apologises for the suspension, saying ASX will not allow trading to resume without a clean audit report. He cites over 15 Tcf of prospective resource. CEO presentation repeats known facts. Text truncated.
17 Dec 2019regulatory community update▼ BadMajor
The Court of Appeal rejected Lakes' appeal against the Macaulay judgment on the Victorian exploration moratorium, with costs awarded to the Victorian Government. This resolves the long-running case against Lakes. The chairman calls it of little consequence with the moratorium expiring in about six months.