LKO - Lakes Oil [Archive] - Aussie Stock Forums

neild1971

24th-July-2008, 10:24 AM

Trading Halt Request
Lakes Oil N.L. (ASX Code: LKO) wishes to request a trading halt in relation to the potential
acquisition of an offshore petroleum asset close to its current Wombat field.
Lakes Oil requests the trading halt remain in place until it is in a position to announce details
about the acquisition, which will occur no later than 10am on Thursday 24 July 2008.
Lakes Oil is not aware of any reason why the trading halt should not be granted.

Yours sincerely
LAKES OIL N.L
Raymond E South

Dear Sir
Voluntary Suspension Request
Further to its trading halt announcement on Tuesday 22 July, Lakes Oil N.L. (“LKO”) wishes to
request a voluntary suspension of trading in its shares.
Lakes Oil requests the voluntary suspension remain in place until it is in a position to announce
details about the matter the subject of its earlier announcement, which is expected to occur no
later than 10am on Tuesday 29 July.
Lakes Oil is not aware of any reason why the voluntary suspension should not be granted.
Yours sincerely
LAKES OIL N.L

BESBS Player

14th-November-2008, 05:01 PM

As the market seems to be bouncing around the bottom, I've had a look around for potential long term BESBS plays and decided that LKO is worth a look. Been accumlating these at .004c.

1. It is the longest surviving oil explorer in Australia. Sure it has squillions of shares but they are generally owned by the same holders - they just keep buying more at each SPP. Rob Annells manages to keep them going through thick & thin.

2. They are now talking of drilling a follow-up Wombat drilling to the tight gas find some years back. According to management, they claim that independent experts have valued the potential of Wombat at $16m. When this new drilling finally occurs, every dog and Victorian will be on board as their equivalent to a Melbourne Cup bet.

3. LKO have some history of getting good volumes and SP spikes when drilling action occurs. Given Wombat's previous history, it should spark some action.

4. LKO has over $7m in the bank!

5. The SP of LKO has never been this low in its history. At 0.004c, every move is 25% gain.

This could be a 12 month or longer hold. No guarantees in this market...

BESBS Player

29th-November-2008, 08:28 PM

Heard from the AGM that there might be some drilling action in H1 2009. DYOR. I hold this one and see a handy profit some time in 2009 :)

BESBS Player

18th-December-2008, 11:54 AM

Interesting to see that volumes have started to increase a bit this week. LKO will always be exposed to the quick trade (ie. buy at .004c and sell for .005c) but this will disappear quickly when action finally occurs.

From what I hear, LKO are planning to re-test the old Wombat drillings (appraisal) and then drill a new Wombat exploration well - all hopefully H1 next year. Now management know they are looking at tight gas, better equipment and relevant expertise is hoping to get earlier gas discovery to commercial level. The new exploration well is a bonus.

Very much a speecie but I'm happily accumulating LKO with a 2009 outlook:)

muzzza

18th-December-2008, 12:02 PM

Interesting comment you make there.. Where are you getting your information from if you don't mind me asking?

BESBS Player

18th-December-2008, 06:04 PM

Hi Muzzza,

Like all posts here, nothing can be absolutely guaranteed. That said, my source is in the industry and has links to both the former drill at Wombat and upcoming activity with LKO. Can't say more on a public forum and have deliberately kept details vague in the post above. I'm still buying LKO and as the activity in not likely until H1 2009, one could argue that it is in my interest to simply shut up, minimise buyers and buy more at the moment with less competition. Just thought that some punters might like the info. for what it is worth... I am looking forward to action in 2009.

Sorry I can't be more specific Muzzza but hope that helps.

Cheers.

muzzza

18th-December-2008, 09:48 PM

BESBS Player

24th-December-2008, 12:42 AM

Yesterday's announcement shows that LKO are continuing to work behind the scenes on the potential merger. Although I'm sure we will see more .004c to come, it does appear that the supply at this price is slowly diminishing.

Holding and still accumulating LKO

Garpal Gumnut

24th-December-2008, 12:45 AM

If I'm not mistaken Paul Keating was involved in this stock many years ago.

He is an ex pm of Australia.

Is he still on the register?

gg

BESBS Player

24th-December-2008, 03:42 PM

No idea, GG.

However I did see today that Robert Annells has transferred, as Paul Keating would say, " a beautiful set of numbers" (some 41m shares) from a personal account to an indirect account.

Why bother unless,
a. tax benefit later on? (both super accounts, so not sure if it matters??)
b. can sell some stock if it rises with upcoming action next year and not be seen in his own name?

No guarantees but suspect that this one will move in 2009.

Holding LKO.
DYOR

Jonathan111

24th-December-2008, 04:55 PM

Is this the same Paul Keating from "The Great Piggery Scandal"

Some key questions remain unanswered:
Has Keating cheated on his tax return?
Why did "the world's greatest Treasurer" buy into a business heavily in debt?
http://www.australian-news.com.au/Keating0399.htm

Anyway, if LKO does rise you will make a huge gain...

BESBS Player

27th-December-2008, 11:37 PM

From Dec.18:

From what I hear, LKO are planning to re-test the old Wombat drillings (appraisal) and then drill a new Wombat exploration well - all hopefully H1 next year. Now management know they are looking at tight gas, better equipment and relevant expertise is hoping to get earlier gas discovery to commercial level. The new exploration well is a bonus.

Noticed that Rob Annells has transferred 41m shares from a direct account into an indirect account. In fairness, might be for tax reasons...not sure.
Mind you, if you want to sell some stock when the SP rises, then it looks much more palatable for shareholders if the sale is from an indirect account where you can always claim that you did not have total control over the decision. Maybe I'm being suspicious but starting to think that my quote above might be close to the mark. If this is correct (and we will probably never know), management must have some hopes for LKO's SP to move northward in 2009 at some stage.

Just wondering...

Holding LKO

BESBS Player

10th-January-2009, 09:18 AM

News on the merger should be the trigger to get things moving for LKO. I'm expecting a drilling program announcement shortly after the merger is confirmed.

Holding LKO

BESBS Player

12th-January-2009, 12:59 AM

Just reading through relevant articles and found this one for LKO.

Wombat gas field could yield $118mBarry FitzGerald
October 30, 2008

MELBOURNE'S Lakes Oil has given shareholders the best estimate yet of what the group's unconventional or "tight" Wombat gas field in the onshore Gippsland Basin might be worth.

Working off two independent assessments, Wombat's value was put at $50 million to $88 million on a best estimate of Wombat's contingent resource base, or $81 million to $118 million on a high estimate basis.

Lakes made the point that at its recent share price value of 0.4¢ it had a market valuation of $16.8 million or $9.8 million after deducting cash on hand of $7 million.

Key to the Wombat valuation was the finding by Gaffney, Cline & Associates that its estimated ultimate gas recovery potential ranged from 211 billion cubic feet of gas to 394 billion cubic feet of gas.

The work highlighted that the gas resource values were highly sensitive to east-coast gas market price assumptions. The valuation was based on gas price estimates of $3.75 a gigajoule in 2008, rising to $5.23 to $8.23 a gigajoule by 2016.

While gas fields in the offshore Gippsland Basin are free-flowing, Wombat's reservoir sandstones are tight, meaning that they need to be artificially stimulated to achieve commercial flow rates. Stimulation by fracturing the sandstones or other methods is common in the US, including the big Pinedale project in Wyoming.

Lakes said that the reports had confirmed its "view that the Wombat gas field is a highly prospective undeveloped unconventional gas resource". It is now preparing to drill the Wombat 4 well in a position it believes will better test the structure's full potential.

With the potential merger thrown in, LKO should be in for a big 2009.

Holding LKO

Wysiwyg

12th-January-2009, 02:05 AM

Holy mackeral, .001 cents = 25% gain.Buy early and sell before spud - you won`t need many parcel passers to make a tidy profit here.

As for a serious oil and gas company :sly: they could do worse than be simply a name and number on the ASX.Worse off credability & price wise than years ago when some other fandango drill site was on the cards.Should burn up the cash in hand on wombats, administration, director fees and generally keeping the dream alive.

Am i not seeing the real picture here?

nunthewiser

12th-January-2009, 02:22 AM

Wysiwyg

12th-January-2009, 02:46 AM

Over 4.2 billion shares on issue and about 90 million nov. 2009 options. I don`t think multimedia (MUL) ever had that many on churn.

BESBS Player

13th-January-2009, 01:13 PM

Hi Numthewiser.

Some good points made above but don't forget the key here is the context of the strategy to make money.

Iam actually amazed they are still listed to be honest .....but hey one has to admit they have been around a long time doing the same thing....... how many shares are on issue these days , must be in the zillions with all the cap raisings/spp,s ,new issues its done over the years

True, it is surprising that LKO have survived at one level. Yet Annells is a smart operator when dealing with raising money. Generally speaking the drill targets are lower cost on-shore targets, reports/SPP documents are hard copy and sent to holders so they see directly the project in question. The shares on offer are huge but many are bought by the same shareholders. None of this guarantees drilling success...LKO are evidence of that! However it does help explain why LKO has a loyal group of shareholders who keep pitching in for drilling.

As a BESBS player, this is a key factor is picking stocks that have the potential to bring big returns. A share consolidation would impact negatively on the value of share holdings but this won't happen unless Wombat is successful...again, not my problem as I would be gone by then. Ultimately LKO have money at present, shareholders have the elusive dream of finally finding gas or oil, and the SP is close to the annual low range so leverage is higher.

Just my thoughts and no guarantees.

Cheers,
BESBS

nunthewiser

13th-January-2009, 01:22 PM

Hi Numthewiser.

Some good points made above but don't forget the key here is the context of the strategy to make money.

BESBS

yeah m8 i always have LKO on my watchlist as with EGO .. have made money in the past BUT the trick with both these naughty lil tinpots is watch the vols .BOTH prone to looking after the "boys " first and often a nice volume spike either way before anything due

not knocking your choice of trade , was genuinely surprised they have lasted this long :D

BESBS Player

13th-January-2009, 01:31 PM

G'day Wysiwyg.

Over 4.2 billion shares on issue and about 90 million nov. 2009 options. I don`t think multimedia (MUL) ever had that many on churn.

Shares on offer are like grains of sand on the beach...true. Yet as a BESBS play, this is not necessarily a bad thing. Provided people also buy in huge quantities, you can make money. In this case, the leverage is the key. High leverage to large potential profit usually lures the punters. That's what I am banking on. I don't guarantee LKO will make great returns but I genuinely think that it will (hence I am buying shares in it). I also make mistakes and get it wrong. This financial year I have made some mistakes (as can be seen from some threads here. I managed profits (ave. 10-50%) on CTP: Blamore & 93001, EGO: Star Finch, MOG: Bazzard, ITC (just on a run in Sept.) and very recently GDN (Paradox 1 workover). TSV is also looking good - up 25% to date. To balance this, I only broke even on the last CTP play and EGO (Lake MacLeod) was a loss.

Based on my thoughts (see post 14/11) and comments here, I don't see the shares on issue being a major problem for this BESBS play. Remember though, I might well be wrong and time will show if this is true.

All the best with your investments,
BESBS

BESBS Player

14th-January-2009, 08:02 AM

[QUOTE=nunthewiser;384851]have made money in the past BUT the trick with both these naughty lil tinpots is watch the vols .BOTH prone to looking after the "boys " first and often a nice volume spike either way before anything due

Fair point Nunthewiser. That is why I was interested in the 41m transfer of shares from Annells account into an indirect account. My suspicion is that this move has been made to allow him to sell some shares in the next spike as an indirect interest. Will be interesting to watch what happens but I do see this as a sign that management have hopes for a SP spike as LKO drills Wombat.

BESBS Player

1st-February-2009, 01:16 AM

Now that the merger seems to have been delayed, LKO can get on and announce a drilling program. Watching carefully for news...

Holding LKO

BESBS Player

15th-February-2009, 11:39 PM

Good to see a Director buying shares... While he has not put the house on it, it is better than seeing them sell stock!

Holding LKO

BESBS Player

1st-April-2009, 09:18 PM

Volumes have been up at times during the last week. Rob Annells has just bought $76k of LKO. Suspect that Q2 might have some news ;)

Holding LKO

nevieboy

2nd-April-2009, 02:30 PM

What's going on? I can't find any new news on LKO.
Trades are over 100 so far.
60 million plus shares have already been traded.
Up 25% (0.005)
Any ideas what's going on???
Cheers.

YOUNG_TRADER

2nd-April-2009, 03:58 PM

I have been watching it for a few weeks now for the following reasons

1. Runs in ADY CVI INL CFR showing that the penny dogs will run on news

2. LKO director buying 19M recently on mkt at 0.004

The following LKO ann on its Wombat Gas deposit
http://imagesignal.comsec.com.au/asx...f/00896456.pdf

in particular
These figures have been released to shareholders to enable them to better understand the valuation of their company which is currently selling on the ASX at 0.4 cents giving a market valuation of $A16.8m with $A7m of cash in the bank.

Lakes Oil N.L. also commissioned Palliser Strategic Management and Langusch & Associates to provide an independent asset evaluation in PRL 2 base on implied values associated with preliminary commercialization plans for this underdeveloped unconventional gas resource. Based on a range of in situ risk-adjusted values calculated from the project modeling and implied trade sale values from recent CSM activity, their P50 value range for the Wombat Field 2C resource case is between $A50m-$A88m.
$50m - $80m = 1.2c - 1.9c

Just throwing some thoughts out there, volume is ridiculous smells of insiders

nunthewiser

2nd-April-2009, 04:30 PM

LOL i see that it closed at .006 ....... silly bugga in auction needed to cut a cupl off his order then EVERYONE would got them at .005 .

better send him the "idiots guide to action ettiqette "

lol blessim :D

i hold at .005 . vols very intresting .

punt only

Jez

2nd-April-2009, 04:53 PM

Volumes have been up at times during the last week. Rob Annells has just bought $76k of LKO. Suspect that Q2 might have some news ;)

Your a legend, lets hope we can make some money on this!

The following LKO ann on its Wombat Gas deposit
http://imagesignal.comsec.com.au/asx...f/00896456.pdf

This seems to be a dead link or need a User name and Password, can you oblige with them and the correct login page?

Just throwing some thoughts out there, volume is ridiculous smells of insiders

Just Day-Trader speculation at this point!

If there is Insider Action here, what can you achieve by telling us the obvious? :banghead: Perhaps it might be better for your financial future to make friends with these Insiders :2twocents than looking at them and their friends in the eyes in a court room. :badass: If you have no friends on the inside, you have to ask your self a SERIOUS question; Why are you Day Trading at all? :horse:

Lets hope LKO has another one of it's 5 year Spikes, say 5 Cents would be nice, but "Dreams are free".

UPKA

2nd-April-2009, 08:05 PM

Something a bit off topic, heres a brief profile on the Chairman of LKO:

Robert Annells is the non-executive chairman of the Company. His experience includes extensive provision of corporate investment advice to the business and resource industries. He is chairman of Lakes Oil NL and was formerly a member of the ASX having been in the securities industry for more than 40 years during which time he was Managing Director of Credit Lyonaise May and Mellor and a director of Dawa Securities SB Capital Markets Stockbroking Limited.

He's experience is in securities not in oil exploration, if he's buying up in volume just 2 days ago with his retirement fund (he's 68, nearing retirement age), my guess is something is about to release soon (good or bad).

He's also the chairman of Minotaur Explorations, which discovered OZL's Promenant Hill.
Funny though, none of the directors on board has Oil/Gas background...

YOUNG_TRADER

2nd-April-2009, 10:14 PM

Just Day-Trader speculation at this point!

If there is Insider Action here, what can you achieve by telling us the obvious? :banghead: Perhaps it might be better for your financial future to make friends with these Insiders :2twocents than looking at them and their friends in the eyes in a court room. :badass: If you have no friends on the inside, you have to ask your self a SERIOUS question; Why are you Day Trading at all? :horse:

Ummmm just making an observation here mate, I've noticed with most pennies they are like leaky boats when it comes to info, who knows maybe it is just day traders, if I knew I'd be a gagillionaire but sadly I am not

Not sure what the rest of your post is about

Hmmmm UPKA interesting thoughts, if something does come out in the next few days I'd say that ASIC and the ASX will have a few questions for Mr Robert Annells (assuming he was the one that did the 19M buy) query the timing of his buy

Anyhoo will be interesting like many other stocks to see whats going on here

BESBS Player

2nd-April-2009, 10:42 PM

[QUOTE=Jez;416394]Your a legend, lets hope we can make some money on this!

Thanks for the compliment, Jez.
I have been suggesting that LKO should run for reasons listed earlier on this thread.
Much more to be made here in 2009. Like many speccies, they can often rise well over fundamental values...greed often rules. Hopefullyjust the start of the ride.

Remember I am biased as I have plenty at .004c so DYOR.:)

nunthewiser

3rd-April-2009, 05:06 AM

Iam actually amazed they are still listed to be honest .....but hey one has to admit they have been around a long time doing the same thing....... how many shares are on issue these days , must be in the zillions with all the cap raisings/spp,s ,new issues its done over the years

yeah m8 i always have LKO on my watchlist as with EGO .. have made money in the past BUT the trick with both these naughty lil tinpots is watch the vols .BOTH prone to looking after the "boys " first and often a nice volume spike either way before anything due

not knocking your choice of trade , was genuinely surprised they have lasted this long :D

would that be classed as as unbiased ramp or just an observation...............so many dogs gettin floaties its scary.

UPKA

3rd-April-2009, 09:02 AM

Hmmmm UPKA interesting thoughts, if something does come out in the next few days I'd say that ASIC and the ASX will have a few questions for Mr Robert Annells (assuming he was the one that did the 19M buy) query the timing of his buy

Im sure you've seen it more than I did, ASIC often turn a blind eye on those small insider traders especially with micro caps. insider trading is often difficult to prove, and even if it goes to court it'll prob get thrown out for the lack of evidence, Director can just say that he had spare cash laying around and wanted to invest in the market during this "bull run".

bt anyways, i think i might be getting too far ahead of myself. only time will tell...

UPKA

3rd-April-2009, 09:56 AM

Company announcement, been issued a speeding ticket:

a. There is an increasing awareness within the market and the petroleum industry about new
successful technologies being used in the recovery of gas from “unconventional” reservoirs.
Lakes Oil NL’s tight gas activities in Gippsland are prime examples of such unconventional
reservoirs in Australia.
The increased awareness is illustrated by the large numbers being paid for Coal Seal
Methane reserves (unconventional gas) in Queensland, together with corporate activity within
the sector.
Also in Western Australia a “tight gas” exploration well, “Warro” is currently being drilled using
similar technology used by Lakes Oil NL in Gippsland, which again is an example of
increasing interest in unconventional gas.
b. With the above in mind, on 29 October 2008, Lakes Oil NL released an announcement
indicating a 2C reserve of 293 Bscf, which was compiled by Gaffney Cline & Associates. An
independent asset evaluation of this report was conducted by Palliser Strategic Management
and Langusch & Associates. Based on a range of in situ risk-adjusted values calculated from
the project modelling and implied trade sale values from recent CSM activity their P50 value
range for the Wombat Field 2C resource case is between $A50million-$A88million.
Internet Site: www.lakesoil.com.au
Email Address: lakes@lakesoil.com.au
c. Lakes Oil NL is currently capitalised in the market at approximately $16million and currently
has approximately $6million in cash and liquid assets.

BESBS Player

4th-April-2009, 12:35 AM

Loved today's announcement by LKO.

1. Re-confirmed the opportunities at Wombat. Remember that some of these are appraisals, so chances are better than pure exploration. After all, knowing the previous flow rates, LKO management would hardly re-test if they did not think commercial flows were not possible.

2. Still plenty of cash

3. No mention of management buying shares being a buy signal??? LOL

4. LKO had to announce they are unaware of news. If they did acknowledge, it is insider trading. This now gives the LKO SP time to re-trace a little and others to get set. Can't see any news out now for a few weeks - got to make sure that there is some gap between management purchases and drilling update.

Holding plenty, so DYOR

sagitar

5th-April-2009, 12:14 PM

Hi all,
Have been watching this stock lately with interest. Also, picked up a few shares last week with the intention of holding LT. This co has run hard in the past, up to 7c a few years back. With a positive ann from Wombat drilling and strong market interest in the gas sector - this looks like a worthwhile purchase. :)

There was some discussion earlier regarding a potential jv partner for LKO - would welcome any thoughts as to who might be a likely candidate, if at all? Perhaps some of the attention LKO has been getting recently relates to this?? Anyway I'm sure we'll find out soon enough.

cheers!

RP_Automotive

5th-April-2009, 09:46 PM

wrong stock, sorry guys!!

Shrewd Crude

5th-April-2009, 09:50 PM

JEZ is right...
BESB'S player is a legend...
He makes it look toooooo easy with his disciplined approach to risky oilers.........
:cool:
.^sc

nunthewiser

5th-April-2009, 09:51 PM

wrong stock, sorry guys!!

LOL i bet a few of the punters that got caught on the last spike probably thought that also :D......... how did you get away with not posting 100 characters?

RP_Automotive

5th-April-2009, 10:01 PM

Not sure how I got away with less than 100 characters...Mum always told me I was special :D

I am watching LKO closely though. I think their tight gas is interesting and the spare cash on hand.

Does anyone think is the testing for tight gas at Warro goes well, that LKO could get some more attention? Considering they are of similar nature.

Not holding LKO.

YOUNG_TRADER

6th-April-2009, 11:35 AM

4. LKO had to announce they are unaware of news. If they did acknowledge, it is insider trading. This now gives the LKO SP time to re-trace a little and others to get set. Can't see any news out now for a few weeks - got to make sure that there is some gap between management purchases and drilling update.

Hmmmm UPKA interesting thoughts, if something does come out in the next few days I'd say that ASIC and the ASX will have a few questions for Mr Robert Annells (assuming he was the one that did the 19M buy) query the timing of his buy

Yeah really agree with that last bit, news I would have thought would be at least 2 weeks off that way the directors buy doesn't look suss

Although its not a concrete rule to follow (as it assumes that directors are savvy investors) the old adage goes directors sell for many reasons but they only buy for one..... time will tell

BESBS Player

7th-April-2009, 12:55 PM

Loved today's announcement by LKO.

LKO had to announce they are unaware of news. If they did acknowledge, it is insider trading. This now gives the LKO SP time to re-trace a little and others to get set. Can't see any news out now for a few weeks - got to make sure that there is some gap between management purchases and drilling update.

LKO starting to retrace as I suggested on 3/4. Time to accummulate if one wants to...

PS:

YOUNG TRADER: You are right on the money - management only buy for one reason!

RP AUTO: Yes, I do think that Warro will help LKO. Importantly, the drilling techniques will be the big help as a smooth drill shall demonstrate the technology. This is another reason why I like LKO.

:D Thanks for the compliment.:)

Holding LKO

BESBS Player

22nd-April-2009, 11:12 PM

Just watching LKO at present and starting to like the way it is slowly building. Almost all of the .004c sales are gone (we had a huge $80 sale today at that price!) and occasionally we have hit .006c.

Still might be a few weeks off news (depends what sort of gap management want between an announcement and their recent purchases?) but any confirmed drilling program should be met with a quick, positive response. TSV's successful use of new technology is a bonus for LKO given the similarities that exist between the 2 projects.

Happily holding LKO :)

JackC

23rd-April-2009, 06:24 AM

YOUNG_TRADER

23rd-April-2009, 12:31 PM

Can't read too much into the history of this company but appears to have some momentum at the moment & I'm not afraid to admit that I'm happy to be riding anything that YT is on ;)
Guess it's a waiting game at the moment. Money isn't making anything sat in the bank so what the hell...

lol thanks but becareful, after all this is a spec oiler with no revenue apart from constant SPP's and placements

That being said Wombat imo looks to be a massive sleeper asset

BESBS Player

23rd-April-2009, 01:40 PM

Agree 100%, YT.

Nice to see LKO now steady on .005c and testing .006c again. Just a matter of time until the Wombat awakes from its slumber ;)

Holding LKO at .004c...

JackC

23rd-April-2009, 07:38 PM

lol thanks but becareful, after all this is a spec oiler with no revenue apart from constant SPP's and placements

That being said Wombat imo looks to be a massive sleeper asset

Sure thing. This has been on my watchlist for well over a year now & aware that the company hasn't made money before. Have always had a good chunk of my portfolio in oil as have worked in the oil/gas industry for the last 15yrs. Not saying i'm an expert by any stretch but tend to stick with what I know rather than what I don't. Obviously this one is a major spec but with the Chairman recently buying up a decent chunk of this stock & the gas recovery technology that seems to be making some waves within the industry I'm happy to take a punt on this one.

JackC

24th-April-2009, 06:12 AM

Just been doing a bit more research & in the last few months directors between them have purchased 65m shares for a total cost of $255k.
Can't imagine they're risking that sort of money without knowing something is about to happen.
Will wait & see I guess.

BESBS Player

24th-April-2009, 11:30 AM

Hi Jack.

$255k helped re-assure me that LKO was worth a punt.
TSV's success with the new fraccing technology helps as well.

Eloise

24th-April-2009, 02:05 PM

Is it just me or did someone just buy 10m worth?

Holding at .005 mmm, so tempting to add more to the parcel...

BESBS Player

24th-April-2009, 04:25 PM

Hi E.

Yes, a couple of large sales went through.

If one is happy with the story (outlined in ealier posts), a 10m purchase @
.005c offers great leverage to potentially significant profits later this year.

RP_Automotive

28th-April-2009, 02:56 PM

Seems to have found *some* support at .005 with alot of people begging @ .004...Its sitting at .006 now but .005 seems to be a new support level.

BESBS Player

28th-April-2009, 10:21 PM

Hi RP.

Agreed. .005c seems to have solid support but .006c is growing. We are now starting to get significant queues for .005c at times. (This morning it was around 15m queued for .005c).

This will just quietly move along for a little while...

Holding LKO

YOUNG_TRADER

28th-April-2009, 10:50 PM

As the company said earlier this month the WA gas exploration well WARROW will hold the key short term for the companies future and if it is to ever hope to realise the estimated $50m- $88m implied value

Company announcement, been issued a
speeding ticket:

a. There is an increasing awareness within the market and the petroleum industry about new successful technologies being used in the recovery of gas from “unconventional” reservoirs. Lakes Oil NL’s tight gas activities in Gippsland are prime examples of such unconventional reservoirs in Australia.
The increased awareness is illustrated by the large numbers being paid for Coal Seal Methane reserves (unconventional gas) in Queensland, together with corporate activity within the sector. Also in Western Australia a “tight gas” exploration well, “Warro” is currently being drilled using similar technology used by Lakes Oil NL in Gippsland, which again is an example of
increasing interest in unconventional gas.
b. With the above in mind, on 29 October 2008, Lakes Oil NL released an announcement indicating a 2C reserve of 293 Bscf, which was compiled by Gaffney Cline & Associates. An independent asset evaluation of this report was conducted by Palliser Strategic Management and Langusch & Associates. Based on a range of in situ risk-adjusted values calculated from the project modelling and implied trade sale values from recent CSM activity their P50 value range for the Wombat Field 2C resource case is between $A50million-$A88million.Internet Site: www.lakesoil.com.au
Email Address: lakes@lakesoil.com.au
c. Lakes Oil NL is currently capitalised in the market at approximately $16million and currently
has approximately $6million in cash and liquid assets.

YOUNG_TRADER

30th-April-2009, 03:55 PM

Interesting Qtrly read for LKO

Additional Independent Assessments in PRL 2
In addition to the independent assessment of the
Wombat Field in PRL 2 previously conducted by
Gaffney Cline and Associates, Lakes Oil NL has
commissioned the consulting group to provide us
with an independent evaluation of the Trifon and
Gangell fields in PRL 2, which will include results
from the proposed testing at North Seaspray-3 in
the next quarter. Results of this evaluation are
expected to be completed in the next two months.
The evaluations will provide with us a much better
perspective of the undeveloped tight gas resource
contained in the Strzelecki Group in the southern
part of PRL 2.

YOUNG_TRADER

4th-May-2009, 11:13 AM

Its no secret that LKO's Wombat field and TSV's Warrow are comparable the company has itself made the comparison (see ASX Price Query Response dated 3/4/09)

Also in Western Australia a “tight gas” exploration well, “Warro” is currently being drilled using similar technology used by Lakes Oil NL in Gippsland, which again is an example of increasing interest in unconventional gas.

Interesting TSV has gone into a trading halt pending flow rates at their Tight Gas Structure Warrow, if they are positive the stock will go to the moon, not holding any but am holding LKO whose tight gas structure know as Wombat is worth $50m - $88m = 1.2c - 2.1c (see numerous anns including ASX Price Query Response dated 3/4/09 and letter to shareholders dated 29/10/08)

Another point of interest is that TSVs current mkt cap is 900m@2.5c= $22.5m and it has a 10% interest in Warrow

Lakes mkt cap is 4,265m@0.5c= $21m yet it has 100%

Theoretically Lakes could 70-80% of the well to a major and retain a 20-30% free carried interest

So keep an eye

BESBS Player

4th-May-2009, 10:44 PM

YT,

good comparison between LKO and TSV. The main benefit to LKO will be the assurance that the technology does work, as TSV will demonstrate. Once that is confirmed, it adds to the security of the Wombat project.

Happily holding LKO :)

YOUNG_TRADER

8th-May-2009, 11:48 AM

With D-day around the corner for TSV at its Warrow well I'm surprised LKO hasn't attracted more interest yet

Will definately be one to watch if TSV starts going bonkers as it will run off its coat tails

Also be interesting to see what values that consulting group give to the Trifon and Gangell fields

Lakes Oil NL has commissioned the consulting group to provide us with an independent evaluation of the Trifon and Gangell fields in PRL 2,

YOUNG_TRADER

12th-May-2009, 02:26 PM

Based on TSV and LKO's ann today I think LKO is really undervalued

wow 70M just went through looks like someone else agrees

Its no secret that LKO's Wombat field and TSV's Warrow are comparable the company has itself made the comparison (see ASX Price Query Response dated 3/4/09)

Also in Western Australia a “tight gas” exploration well, “Warro” is currently being drilled using similar technology used by Lakes Oil NL in Gippsland, which again is an example of increasing interest in unconventional gas.

Interesting TSV has gone into a trading halt pending flow rates at their Tight Gas Structure Warrow, if they are positive the stock will go to the moon, not holding any but am holding LKO whose tight gas structure know as Wombat is worth $50m - $88m = 1.2c - 2.1c (see numerous anns including ASX Price Query Response dated 3/4/09 and letter to shareholders dated 29/10/08)

Another point of interest is that TSVs current mkt cap is 900m@2.5c= $22.5m and it has a 10% interest in Warrow

Lakes mkt cap is 4,265m@0.5c= $21m yet it has 100%

Theoretically Lakes could 70-80% of the well to a major and retain a 20-30% free carried interest

So keep an eye

YOUNG_TRADER

12th-May-2009, 02:43 PM

Hey Nun, I dont know about ramps but here are the facts when comparing to the much more advanced TSV

TSV 900M@ 3.3c = $30m and 10% interest

LKO 4265M@0.006 = $25m and 100% interest

Warrow required expensive exploration wells, Wombat has 3 existing exploration wells which Lakes plans to flow test/frac and has deffered the much more expensive Exploration drilling Wombat 4

Proposed Operations
The following operations are scheduled for our wells during the next quarter, once all required approvals have been granted:
• North Seaspray 3: re-entry using coiled tubing unit, nitrogen lift clean-out and flow test the gas zone at 1,110m depth over an extended period.
• Wombat 2: re-entry, re-fracture and flow test the gas zone at 1,470m depth with a much larger fracture geometry.
• Wombat 3: re-entry, nitrogen lift clean-out and flow test the gas zone at 1,430m depth and the oil zone at 2,106m depth, which were fracture stimulated in 2005.

Furthermore LKO had Wombat independently valued at $50m - $88m = 1.2c - 2.1c (see numerous anns including ASX Price Query Response dated 3/4/09 and letter to shareholders dated 29/10/08)

and is in the process of getting the Trifon and Gangell fields valued

Lakes Oil NL has now commissioned the consulting group to provide us with an independent evaluation of the Trifon and Gangell fields in PRL 2, which will include results from the proposed testing at North Seaspray 3. Results of this evaluation are expected to be completed in the next two months. The evaluations will provide us with a much better perspective of the undeveloped tight gas resource contained in the Strzelecki Group in the southern part of PRL 2.

nunthewiser

12th-May-2009, 02:48 PM

i hold as previously pointed out...only kidding.re ramps.. intresting vols , intresting ann , some nice chunks bought today...thankyou for the updates

UPKA

12th-May-2009, 02:52 PM

yep, as soon as a buyer took that chunk out, sellers started to flood in. its not a very liquid stock, we'll see the SP capped at around this level until we get something firmer...

BESBS Player

12th-May-2009, 10:06 PM

Smiling today! TSV looking good. The technology appears to be helping to increase previous results and to date, no breakdowns! Given the similarities to LKO and the Wombat appraisals, no wonder punters are joining LKO today.

Remember YoungTrader, these valuations reflect the shallow targets. If successful, deeper zones can be tested and these add extra $$$ potential.

Patience will still be required but presuming flow rates from TSV meet expectations, LKO should get another kick along in a few weeks. :)

Holding LKO

UPKA

13th-May-2009, 08:42 AM

With regards to that $300k buy order yesterday, which was traded after a non-price sensitive announcement. could it be the directors buying themselves or with their related entities (disclosed or not disclosed), just to cover their A*rse with ASX by repeating their own statement extract from the quarterly report?

YOUNG_TRADER

13th-May-2009, 01:31 PM

Who knows UPKA, but if it was they have 3days to let us know

I think its savvy management to keep the mkt fully informed, much better than no news

Happy to hold and wait :)

Dangerous

13th-May-2009, 02:21 PM

... i was told to buy this one at .004/5 a few weeks ago, but did not due to a not so glamourous history....

This stock is for traders only, but there isn't the liquidity there for trading...

Further to thisover 4B shares on issue! YGTBFJ

sismek70

17th-May-2009, 09:34 PM

Australia's first tight gas drilling operation is looking very promising in WA. With TSV a 1/4 way through flow testing schedule for Warro3, initially flowing gas at 2.1mmcf, steadily increasing, and also has flowed to the surface without nitrogen lift, is making the proposed tight gas operations for LKO on the Wombat wells more attractive. Once recovery of frac fluids ceases which inhibits the gas flow the rate will be significantly higher. Latent Petroleum will have the stabilised flow rate results just in time for the Tight Gas Alternative conference in June. Where Rob Annells plans to discuss the Operational Case Study for Wombat tight gas field, should give some more interest into LKO too.

The tight gas era arrives

YOUNG_TRADER

19th-May-2009, 03:49 PM

Tight Gas Alternative conference in June. Where Rob Annells plans to discuss the Operational Case Study for Wombat tight gas field, should give some more interest into LKO too.

The tight gas era arrives

Tight Gas alternative conference, I had no idea, very interesting how this once speculative energy sector is gathering momentum as is the UCG sector, all thanks no doubt to the rise and rise of the CSG sector

LKO is in a very interesting period with no less than 3 price catalysts on the horizon

1. Flow/Fracure testing at Wombat

2. Release of the study on the other Trifon and Gangell fields in PRL 2, which hopefully will also have a valuation ot it as did the Wombat study

3. This tight gas conference should really highlight the fact that TSV is not the only play but LKO too

Dangerous shares on issue is only one side of the equation, you need price to get mkt cap, LKO's isn't that large, bout the same as EGO which has about 3Billion shares on issue and nothing but heaps and heaps of prospective drill targets in W.A. something to consider :)

Eloise

28th-May-2009, 05:10 PM

Does anyone else think the vol today is a bit unusual?
89mil mostly at .005 - there has been a queue for that price for a little while now and all of a sudden wham everyones selling...
Strange considering the results of TSV dont you think?
people just getting impatient waiting on results?

YOUNG_TRADER

29th-May-2009, 01:28 AM

Hi Eloise

Hmmmmm huge volumes going through on LKO but it appears to be sellers or rather fed up holders getting out, very surprising when you consider the milestone achieved by TSV and its JV partners over at Warrow in WA,

also valuations are being done on 2 further fields Trifon and Gangell, I wonder what they will come in at? Considering Wombat was valued at $50m-$88m it will be interesting to see

Finally considering Lakes are about to commence Fraccing/testing at Wombat (the same activity that has driven TSV) I see alot on the horizon for it

Jez

29th-May-2009, 08:29 AM

Hi Eloise

Hmmmmm huge volumes going through on LKO but it appears to be sellers or rather fed up holders getting out,

Looks like someone wanted their $400,000 back. Most of the sales went through at just after 3 PM.

I wouldn't be surprised if the last couple of big days has been some type of manipulation, but I could be wrong?

Will we now be seeing 0.003 again?

Jez

29th-May-2009, 09:09 AM

All the trades that are at the same time are from the same buyer;

TIME_______PRICE_ VOL ___ VALUE
04:10:14 PM 0.005 577,911 2,889.56
04:10:14 PM 0.005 22,089 110.45
03:57:21 PM 0.005 152,911 764.56
03:56:46 PM 0.005 447,089 2,235.45
03:52:00 PM 0.005 52,911 264.56
03:52:00 PM 0.005 400,000 2,000.00
03:52:00 PM 0.005 200,000 1,000.00 XT
03:52:00 PM 0.005 200,000 1,000.00
03:52:00 PM 0.005 1,147,089 5,735.45
03:50:22 PM 0.005 2,000,000 10,000.00
03:49:19 PM 0.005 252,911 1,264.56
03:49:19 PM 0.005 247,089 1,235.45 XT
03:47:17 PM 0.005 1,752,911 8,764.56
03:47:17 PM 0.005 12,997,089 64,985.45
03:44:00 PM 0.005 200,000 1,000.00 XT
03:22:57 PM 0.005 1,433,812 7,169.06
03:22:57 PM 0.005 1,000,000 5,000.00
03:22:57 PM 0.005 869,099 4,345.50
03:22:57 PM 0.005 1,500,000 7,500.00 XT
03:20:33 PM 0.005 287,160 1,435.80
03:19:35 PM 0.005 1,000,000 5,000.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 350,000 1,750.00
03:19:35 PM 0.005 360,000 1,800.00
03:19:35 PM 0.005 2,000,000 10,000.00
03:19:35 PM 0.005 4,000,000 20,000.00
03:19:35 PM 0.005 185,000 925.00
03:19:35 PM 0.005 50,000 250.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 680,000 3,400.00
03:19:35 PM 0.005 2,000,000 10,000.00
03:19:35 PM 0.005 1,000,000 5,000.00
03:19:35 PM 0.005 150,000 750.00
03:19:35 PM 0.005 150,000 750.00
03:19:35 PM 0.005 600,000 3,000.00
03:19:35 PM 0.005 800,000 4,000.00
03:19:35 PM 0.005 900,000 4,500.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 200,000 1,000.00
03:19:35 PM 0.005 200,000 1,000.00
03:19:35 PM 0.005 200,000 1,000.00
03:19:35 PM 0.005 2,000,000 10,000.00
03:19:35 PM 0.005 137,050 685.25
03:19:35 PM 0.005 1,000,000 5,000.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 800,000 4,000.00
03:19:35 PM 0.005 750,000 3,750.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 600,000 3,000.00
03:19:35 PM 0.005 200,000 1,000.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 31,691 158.46
03:19:25 PM 0.005 168,309 841.55
03:19:25 PM 0.005 190,000 950.00
03:19:25 PM 0.005 241,691 1,208.46
03:19:23 PM 0.005 500,000 2,500.00
03:19:22 PM 0.005 258,309 1,291.55
03:19:22 PM 0.005 175,000 875.00
03:19:22 PM 0.005 466,691 2,333.46
03:19:21 PM 0.005 533,309 2,666.55
03:19:21 PM 0.005 366,691 1,833.46
03:19:06 PM 0.005 133,309 666.55
03:19:06 PM 0.005 175,000 875.00
03:19:06 PM 0.005 200,000 1,000.00
03:19:06 PM 0.005 2,000,000 10,000.00
03:19:06 PM 0.005 720,000 3,600.00
03:19:06 PM 0.005 1,000,000 5,000.00
03:19:06 PM 0.005 100,000 500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 1,000,000 5,000.00
03:19:06 PM 0.005 1,800,000 9,000.00
03:19:06 PM 0.005 1,666,830 8,334.15
03:19:06 PM 0.005 890,000 4,450.00
03:19:06 PM 0.005 1,000,000 5,000.00
03:19:06 PM 0.005 125,000 625.00
03:19:06 PM 0.005 212,800 1,064.00
03:19:06 PM 0.005 300,000 1,500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 1,000,000 5,000.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 1,500,000 7,500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 400,000 2,000.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 100,000 500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 200,000 1,000.00
03:19:06 PM 0.005 200,000 1,000.00
03:19:06 PM 0.005 100,000 500.00
03:19:06 PM 0.005 2,000,000 10,000.00
03:19:06 PM 0.005 600,000 3,000.00
03:19:06 PM 0.005 900,000 4,500.00
03:19:06 PM 0.005 2,000,000 10,000.00
03:19:06 PM 0.005 47,410 237.05
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 2,000,000 10,000.00
03:19:06 PM 0.005 3,129,651 15,648.26
03:18:10 PM 0.005 4,566,188 22,830.94 XT
03:09:19 PM 0.005 200,000 1,000.00 XT
02:42:06 PM 0.005 1,000,000 5,000.00 XT
02:20:06 PM 0.005 670,349 3,351.75
02:20:06 PM 0.005 454,651 2,273.26
10:58:37 AM 0.006 126,665 759.99 XT
10:58:37 AM 0.006 73,335 440.01 XT
10:25:30 AM 0.005 186,833 934.17

sismek70

29th-May-2009, 07:31 PM

All approvals are in place for planned activities in PRL2. Scheduled to start mid June. Program estimated cost 1.5mil, in qtrly.

BESBS Player

30th-May-2009, 11:45 PM

Yes, Sismek.

All set to go. Just a little more patience and we should see appraisal action :) Given the success of technology as seen at Warro and the fact that LKO wish to re-test much of the Wombat area (given they have previous data) suggests that management believe that the chances of success are strong.

Happy to hold and watch.

YOUNG_TRADER

3rd-June-2009, 12:09 PM

Hey BESBS, I agree exciting times ahead with LKO, they've been quiet for so long

I was looking at LKO's AGM presentation to try and figure out what Triffon and Gangell might be valued at.

It appears Trifon and Gangell which have combined around 950BCF (Wombat is 700BCF) so its 1.35x the size of Wombat, based on that and using 30c a GJ they should get 1.35x Wombat valuation = $90m - $120m

Another point of interest is that most CSG transactions in Qld and NSW have been done at $3 per 2P so really 30c per 2P seems ridiculously cheap, however this is Vic not Qld and its tight gas not CSG, but I would have thought something like 90c 2P was more appropriate per 2P

Using 90c/2P we get $420m - $624m

So basically 3 of LKO's 6 gas fields would be worth mean $175m = 4cents LKO at 30c GJ very conservative to a more takeover target sale value of say 90c GJ which is a mean value of $522m = 12c LKO

Please note these are my estimates and calculations only at the end of the day LKO is worth what a buyer be it retail, institutional or an Oil company is willing to pay for it, I'm just trying to highlight the potential blue sky

Image 1 (Page 6 AGM pres) shows the location of LKO's RL2 (note this is one of many leases they have) and its clear to see on RL2 that there are 6 seperately identified and mapped Gas Fields with a 7th and much larger BARAGAWANATH gas field

It also shows the location of the Alinta Gas Hub and the Longford Gas facility

Image 2 (page 12 AGM pres) shows the value range for Wombat

Image 3 (page 13 AGM pres) shows the estimated reserves of gas for the other fields

BESBS Player

3rd-June-2009, 09:54 PM

Hi YT.

Once drilling is announced, I suspect that many speculators will also perceive the potential value in LKO and jump on board. Until then, things just simmer away. Q3 is not far away...

Holding LKO @ .004c

philly

10th-June-2009, 07:00 PM

After a long wait, LKO has announced today that further testing of the Wombat 2 & 3 and the North Seaspray 3 wells will commence shortly. The program is designed to re enter, clean out and test the wells with nitrogen. If successful, this will increase the gas flow of these wells and be another step closer to them becoming a commercial prospect. Let's hope for success and an upward movement in the SP. :D
I am a long term holder of LKO. Please DYOR

YOUNG_TRADER

10th-June-2009, 07:07 PM

andione1983

10th-June-2009, 08:08 PM

Long time coming hey Philly? First drilling for like 18months or more I think

We've also got the valuations for Triffon and Gangell due out soon, see above Ive crunched some numbers on it

yeah go LKO, after reading abit of stuff on here, i jumped in 190000 at .05, so we will see how it goes aye interesting times ahead for LKO

andione1983

15th-June-2009, 11:29 AM

yeah go LKO, after reading abit of stuff on here, i jumped in 190000 at .05, so we will see how it goes aye interesting times ahead for LKO

saw this hit .007 thismorning so who knows it might be good news coming, im sure if theres an announcement it will rocket up

YOUNG_TRADER

15th-June-2009, 07:47 PM

saw this hit .007 thismorning so who knows it might be good news coming, im sure if theres an announcement it will rocket up

Well they are drilling/re working their Gippsland Gas projects so we cna expect some updates from here

As well as this we are waiting on the valuations for Triffon and Gangell which I am very confident will surprise the mkt to the upside in terms of just how much gas and what its worth that LKO actually have

An excellent link to a Govt fact sheet that I got from a poster on another forum
http://www.dpi.vic.gov.au/dpi/nrenmp.nsf/LinkView/B1A6854407650B74CA25742B000795EA8B3DA072DA032386CA 2573DF001C56C6/$file/Victoria-OilAndGasFactsheet.pdf

BESBS Player

15th-June-2009, 08:25 PM

Thanks for the link, YT.

It was nice to see LKO hit .007c today. With the news from TSV's Warro looking more and more positive, this can only encourage the likelihood of LKO experiencing some success at Wombat.

1. We know that Wombat has gas. Management know the previous readings. They would not spend money and effort if they felt that it was a waste. Now the technology used at Warro is proving itself, the odds of a successful re-test at Wombat also grows.

1b. Due to technology and the the type of project, any positive upgrades on TSV's Warro project can be a positive externality for LKO.

2. Any revaluations will help get more speculator/trader attention.

3. Re-testing is starting now. Results should start to emerge in the next few weeks.

4. Although LKO have loads of shares on offer, they own the project, not just a small JV %. This also helps, especially if the Victorian supporters get behind the old LKO dog.

We might bounce around a little but I can see the SP trend continuing northward as results near... :)

Happily holding at .004c

philly

19th-June-2009, 01:55 PM

I note another capital raising, this time 200,000,000 shares @0.005. I know that drilling for tight gas is costly but with so many shares on issue the value for current shareholders gets more and more diluted every time there is a capital raising. Should I buy more now? Is a SSP for shareholders likely soon?

RP_Automotive

19th-June-2009, 02:19 PM

https://invest.directshares.com.au/QuotesAndResearch/News/Default.aspx?symbol=LKO&tab=ASX Company Announcements#

Positive news. It will be interesting to see what the rates are.

YOUNG_TRADER

19th-June-2009, 04:28 PM

Long time coming hey Philly? First drilling for like 18months or more I think

We've also got the valuations for Triffon and Gangell due out soon, see above Ive crunched some numbers on it

Hit and cleared at one point 0.008 well done to all the faithful holders out there

Faces a major hurdle at 0.009 if cleared (Big If) will move alot higher

Lots of news happening over the next week or 2

BESBS Player

20th-June-2009, 06:38 PM

Yes, YT. A very interesting few weeks ahead for LKO.

As I see it, LKO have positioned done very well in the past few months. Management attempted to get a merger with Cape Energy but dropped out to preserve cash when oil prices dropped. Now new technology is available for fraccing tight gas (as seen at TSV), they have set up 3 wells to be tested. These are the cheaper end (being onshore) so it minimises expenditure while drilling appraisal targets. Management know that they have gas (and now oil) within them - it is just a matter of finding out if it commercial.

Raising the $1m with Pattersons is fine with me. Explorers need cash and this was done instantly (no drawn-out SPP) and was timed perfectly with the announcements on Friday re. gas and oil in the hole. This announcement should also create further market interest. The dilution is almost irrelevant to the punters when you have so many shares already on the market. This is why the SP still goes up despite the placement. I'm happy to see $1m more in the coffers as long as it is done quickly at this point.

Even better - being largely appraisal wells, this allows the BESBS players such as me the chance to hang around and watch in the knowledge that there are more drills to come with better than the usual odds (given the appraisal rather than pure wildcat nature of these drillings). This was one reason why I was happy to invest more heavily in LKO over the last few months.

Happily holding LKO at .004c :)

YOUNG_TRADER

23rd-June-2009, 01:28 PM

Hit and cleared at one point 0.008 well done to all the faithful holders out there

Faces a major hurdle at 0.009 if cleared (Big If) will move alot higher

Lots of news happening over the next week or 2

What a great perfromance in such terrible market conditions

Now that 0.009 has been cleared it should form a support level, hit an intra day high of 1.1c

Ive banked some profits today at 1c

Good luck to us all ;)

philly

23rd-June-2009, 07:38 PM

SP closed at 1.1c today. Looks like finally the market may be recognising the potential upside of this coy. Waiting for more positive news in the next few weeks. Good luck to all the holders.:D

JackC

23rd-June-2009, 10:38 PM

What a great perfromance in such terrible market conditions

Now that 0.009 has been cleared it should form a support level, hit an intra day high of 1.1c

Ive banked some profits today at 1c

Good luck to us all ;)

Hi YT,
I also took some profit today at 1c but still have a nice parcel left & await the impending 'Trifon & Gangell' valuation which should be out over the next few weeks.
Potential for more good news with the wombat workover adds to the upside & has the potential to pust the SP much highter imho. I am also interested in the much larger, un-drilled 'Baragawanath' field that has the potential to dwarf the 2 existing assets. All this near to existing pipelines & infrastructure.
Exciting times for all LKO holders... :)

BESBS Player

23rd-June-2009, 11:43 PM

Agree Jack - exciting times ahead for LKO. The momentum today, given the red day for the market, shows that LKO is starting to attract attention.

I love a problem that exists because too much oil is filling up a hole!!!

Holding LKO at .004c

nevieboy

24th-June-2009, 01:55 AM

What a great perfromance in such terrible market conditions

Now that 0.009 has been cleared it should form a support level, hit an intra day high of 1.1c

Ive banked some profits today at 1c

Good luck to us all ;)

HI YT,
Why did you cash up some at 1c when there is so much more potenciaul for this stock to go much higher according to you.
Don't get me wrong I'm not having a go at you, I hold 1.3m shares of LKO since mid Jan 09 and want these bastards to go through the roof,so therefore why would you take some profits when there will be a few good announcements coming out in the next few months or so?
Just wondering.

nomore4s

24th-June-2009, 08:55 AM

While I haven't been following this thread I've just had a quick read through the last few pages and there are quite a few posts with low/poor content or mild ramps.

This is a warning that any more posts with low/poor content or mild ramps will be removed and infractions handed out.

sidious

24th-June-2009, 05:25 PM

JTLP

24th-June-2009, 11:56 PM

I have been watching LKO since last March or April. That time it was trading around .05 to .06. Trades around 4 to 5 each day. The idea of holding hundred thousands to millions of shares is tempting. Imagine if it will rise to just $1. I will be a millionare. I was thinking of buying using my punting funds but decided not too.

I checked the charts and they seem to have been around since 1989. From that time till now, their share price has only been around .01 to .1 range. Average. I was thinking if during those good all times, they haven't made progress, why will it do now given the global financial crisis. I decided to punt on others like BTA, ESI, and GDN.

Good luck guys. This is not a downramp. Just my opinion

LOL! I think everybody has dreams of their shares rocketing 100 - 1000%. As mentioned previously, LKO has billions of shares on issue...and things like this (drilling) cost money so they print more. I'm sure punters along the way have made dosh (few on here are examples) but to hold since '89 would have been a fairly lengthy 'investment'...

Just also to point out that with billions of shares on issue it's kinda hard to get up there...but hey OXR (now OZL) did it...so did BPT!

Anyway congrats to BESBS and YT who jumped on at .005. I was sure tempted then but my next overseas junket proved my demise...

DNH

YOUNG_TRADER

25th-June-2009, 04:09 PM

HI YT,
Why did you cash up some at 1c when there is so much more potenciaul for this stock to go much higher according to you.
Don't get me wrong I'm not having a go at you, I hold 1.3m shares of LKO since mid Jan 09 and want these bastards to go through the roof,so therefore why would you take some profits when there will be a few good announcements coming out in the next few months or so?
Just wondering.

Its what I always do, its what I've always done, I take profits so I live to fight another day, the mkts are taking an absolute beating at the moment and so I have been reducing my positons accordingly, this is sort of a Macro Approach, on a Micro Stock specific I continue to hold a fair chunk of LKO becuase of all the fundamental reasons I have outlined

The strategy I employ always means I do leave profit on the table but I dont care as it ensures I live to fight another day :)

BESBS Player

25th-June-2009, 05:53 PM

Should be interesting to see if we get any updates from LKO management before the weekend. The below might be of interest to LKO holders:

Article is provided courtesy of ABC News:

I especially like Rob Annells' comment regarding depth of the find in the Wombat field...we could be sitting on a rocketship here people...

An oil and gas exploration company says its found an onshore oil flow on the Gippsland coastline near Seaspray in south-east Victoria.

The executive chairman of Lakes Oil, Rob Annells, says the discovery was made during exploratory drilling works in the area.

He says the find is geologically significant, and could herald the first onshore oil flow in the Gippsland Basin.

Mr Annells says it is possible the field could be deeper than offshore sites, and the company will start further explorations immediately.

"Which is pretty much the same as what's been recovered offshore, but the difference is that it's much lower in the section, so it's not a surprise to us, but we are surprised that it's flowing, rather than sitting there dead in the bottom of the hole, it's actually flowing into the hole," he said.

Although LKO are obviously re-testing 3 targets at present, I think the SP spike earlier this week was probably on the back of releases like this. Without news, stocks like this can also drift downward. It will be very interesting to see whether the next release has any impact.

Happily holding LKO at .004c :)

BESBS Player

30th-June-2009, 04:08 PM

" Although LKO are obviously re-testing 3 targets at present, I think the SP spike earlier this week was probably on the back of releases like this. Without news, stocks like this can also drift downward. It will be very interesting to see whether the next release has any impact. "

No news yet and I would not be expecting too much until later this week (at least the end of this financial year). As I suggested above, the SP has drifted a little as profit-takersa move in (after all, a lot of traders would have losses that they could off-set a gain in LKO against for this financial year) and Pattersons would have been feeding stock through as well over the last few days.

Tomorrow could be interesting...will we see some early sales with profit-takers wanting to cash in once we hit the new financial year? Won't be too long before we start to get news from management about the Wombat!

Holding LKO

BESBS Player

30th-June-2009, 06:01 PM

From today's Herald Sun:

Lakes Oil makes leap.

Premier John Brumby hasn't had a lot of good news on the revenue side recently, so he will be an interasted spectator as listed Gippsland explorer Lakes Oil tries to make a transition to production.

Unlike offshore oil and gas, tax from onshore production goes straight to the State Government rather than to Canberra.

Which means a 10 per cent royalty on all oil and gas Lakes Oil can produce, which would be more than welcome in Spring Street as the recession cuts chunks out of property and payroll taxes.

Of course it may be some time before Lakes Oil really hits its stride but oil is continuing to flow at its Wombat 3 welland advanced fracturing equipment is trying to free more gas flow from Wombat 2 and North Seaspray 3.

The company hopes to produce commercial quantities of gas out of its "tight sandstone formations with the added advantage that Wombat gas contains virtually no carbon dioxide which would help the state reach its greenhouse gas targets.

From my understanding, we should be getting an update from management re. Trifon and Gangell. This would be a great boost as the Wombat development unfolds.

BESBS Player

1st-July-2009, 09:21 PM

First Big announcement out on the ASX.

Wombat 2:

*1.35 million cubic feet stabilised! This is double what the original flow rate was back a few years ago.

* There are other zones to fracture in wombat 2...this is only the first.

* Wombat 3 to report soon with flow rates and BOPD...

This is starting to look like a decent discovery...:)

holding LKO at .004c

mobcat

1st-July-2009, 10:03 PM

Just found this on the news wires ,big day tommorow for LKO by the looks hey:D

Sydney - Wednesday - July 1: (RWE Australian Business News) -
Lakes Oil NL (ASX:LKO) reports its Wombat 2 well near Seaspray in
Victoria has been successfully refractured in the gas zone at 1470m.
This morning, after a cleanout, the well flowed at an initial
estimated rate of 4.3m cubic feet per day and later decreased and
stabilised to 1.35m cubic feet per day flowing through a half-inch
choke.
This gas zone was previously fracture stimulated in 2004 and
gave a sustainable gas flow of 680,000 cubic feet per day.
The current flow of gas and frac fluids is an estimate only and
the sustainable gas flow will not be known for several weeks as the gas
flow increases and as the frac fluid flow decreases.

*****

Lakes Oil injected 155,297 lbs of proppant into the 1470m zone
in Wombat 2 to produce an effective fracture length of 275 feet. By
comparison, the 2004 fracturing placed only 73,831 lbs of proppant into
this zone, producing an effective fracture length of about 86 feet.
The company notes it has only fracture stimulated one zone out
of several known in this well.
There are additional zones suitable for fracture stimulation in
the other two Wombat wells.
These are untested to date and have the potential to
substantially increase the total flow rate from the Wombat Field.
"The success of our latest refracture treatment and increased
flows gives us confidence that we are close to the commercialisation of
the Wombat Field," Lakes Oil said.

*****

Gaffney, Cline & Associates has released an independent review
of the gas potential of the Greater Trifon Field incorporating the
Trifon, Gangell and Seaspray structures in PRL 2.
A summary of gas initially in place and contingent gas resources
for the Greater Trifon Field shows a 2C contingent resource of 390 bcf
of gas.
The Greater Trifon Field estimate, along with the previously
reported 2C contingent resources of 293 bcf for the Wombat Field, makes
a total 2C contingent resource of 683 bcf for the two areas. This total
reflects results only from the southern fields in PRL 2.
ENDS rx

BESBS Player

1st-July-2009, 11:30 PM

Good post, Mobcat.

What a great announcement. What timing...I'm shocked...wait until June 30, give a full day for a few profit-takers to clear the decks for July 1, then strike me pink an announcement happens to hit the airwaves after close. BEAUTIFUL WORK by management ;)

Back when Wombat first drilled, I bought in at 1.8c and it went to just shy of 8c in the media/emotion-led run (although I dipped out at 6.8c). With this background, and lots of support from the Vics, LKO could run again...
Now we have a stabilised 1.35 million cubic feet, double the 2004 flow rates! We also have the offer to do additional fractures in Wombat 2 (which did not exist previously in 2004).
Add Wombat 3, (and a little oil? - there was mention of this in a recent ASX release)...

Usually I sell out as a BESBS but this has been my one exception - guess buying in at .004c gave me a decent cushion and while I am not usually sentimental about shares, this old dog has been kind to me before. Happy now to wait and watch. The market will tell us if things look as promising as my interpretation of early developments.

Cheers,
BESBS Player

Holding LKO at .004c

jay2000

2nd-July-2009, 04:10 AM

How many Million cubic feet does it take for LKO or any other similar company to be considered commercial? Holding LKO @ .006

BESBS Player

2nd-July-2009, 09:34 AM

Hi Jay,

At this stage, it is more about the potential of the other prospects than just Wombat 2.

Mathew Murphy:

The Age July 2, 2009:

LAKES Oil's Wombat 2 well in the onshore Gippsland Basin has flowed gas at a rate that, if sustained, would make the project one of the largest onshore in Victoria.

Melbourne-based Lakes said Wombat 2 had produced a stabilised gas flow of 1.35 million cubic feet a day after the well was refractured. It said the result moved the project closer to achieving commercialised flow rates.

The sustainable gas flow will not be known for several weeks but Lakes has two untested wells that have been declared suitable for fracture and that have the potential to increase the total flow rate substantially.

Lakes Oil chairman Rob Annells said it was an exciting development.

"These are big numbers that are independently put to us and I think we are just about there," he said. "We were expecting figures in that order."

Jay, it is not just the size of this first gas flow but the fact that there are other options to fracture more tests in Womabt 2, then add Wombat 3 (which already shows a little oil as well), then the Gangell & Trifon upgrades. Needless to say, this is the basis for the quote above in The Age today:

"LAKES Oil's Wombat 2 well in the onshore Gippsland Basin has flowed gas at a rate that, if sustained, would make the project one of the largest onshore in Victoria."

Good luck to all holders.
Holding LKO at .004c

nunthewiser

2nd-July-2009, 11:04 AM

held at .005 as posted here a while back on entry ......... removed original capital today at 1.3 , free ride now..... sunshine and lollipops boys and girls

nunthewiser

2nd-July-2009, 11:38 AM

just in case im asked to prove yet another trading claim :D

mainly posting this here as someone in chat reckons im full of it re LKO even tho ive been telling him about them since .005

please disregard my post to all others as this mainly for one fella that is having a wish trade day in there

YOUNG_TRADER

2nd-July-2009, 02:13 PM

Bring on the updated valuation I say,

For interests sake I have brought back up the figures I crunched to put a value on PRL2

I was looking at LKO's AGM presentation to try and figure out what Triffon and Gangell might be valued at.

It appears Trifon and Gangell which have combined around 950BCF (Wombat is 700BCF) so its 1.35x the size of Wombat, based on that and using 30c a GJ they should get 1.35x Wombat valuation = $90m - $120m

Another point of interest is that most CSG transactions in Qld and NSW have been done at $3 per 2P so really 30c per 2P seems ridiculously cheap, however this is Vic not Qld and its tight gas not CSG, but I would have thought something like 90c 2P was more appropriate per 2P

Using 90c/2P we get $420m - $624m

So basically 3 of LKO's 6 gas fields would be worth mean $175m = 4cents LKO at 30c GJ very conservative to a more takeover target sale value of say 90c GJ which is a mean value of $522m = 12c LKO

Please note these are my estimates and calculations only at the end of the day LKO is worth what a buyer be it retail, institutional or an Oil company is willing to pay for it, I'm just trying to highlight the potential blue sky

Image 1 (Page 6 AGM pres) shows the location of LKO's RL2 (note this is one of many leases they have) and its clear to see on RL2 that there are 6 seperately identified and mapped Gas Fields with a 7th and much larger BARAGAWANATH gas field

It also shows the location of the Alinta Gas Hub and the Longford Gas facility

Image 2 (page 12 AGM pres) shows the value range for Wombat

Image 3 (page 13 AGM pres) shows the estimated reserves of gas for the other fields

mickyj

2nd-July-2009, 06:49 PM

Can anyone tell me were i can find information regarding further announcment dates from lko?

Congrats on a great day!

purchased @.005 :D

Eloise

2nd-July-2009, 07:36 PM

Can anyone tell me were i can find information regarding further announcment dates from lko?

Congrats on a great day!

purchased @.005 :D

Hey Mickyj
I haven't seen anything about future announcements, my only suggestion would be to ring them. (email post)?
I have heard they are pretty friendly to talk to and try and help where they can.

Off there website:
If you would like to know more about Lakes Oil N.L., please contact:

Lakes Oil N.L.
Level 11, 500 Collins Street
Melbourne Vic 3000

Postal
Po Box 300
Collins Street West
Melbourne Vic 8007

Phone
(+ 61 3) 9620 7299

Fax
(+ 61 3) 9629 1624

Email
lakes@lakesoil.com.au
Website
www.lakesoil.com.au

mobcat

2nd-July-2009, 10:40 PM

Gday all this bit of press is woth a read for all LOK followers:D:D:D:D

http://sale.yourguide.com.au/news/local/news/general/lakes-oil-confident-of-flows/1550944.aspx

Cool hey :band Party time my call on LKO :)

Cheers

BESBS Player

3rd-July-2009, 12:54 PM

Nice to see that LKO is holding up well and was another .002c up when I last checked a few minutes ago. We might see a little profit-taking for the end of the week as traders get set for beer-o-clock but the bulk of the money will stay.

While we now wait for the Wombat 2 statistics to be confirmed over a longer test period, we have the very appetising Wombat 3 figures approaching. The article below (thanks to Scully) gives a little insight into the excitement:

From Gippsland Times

Lakes Oil confident of flows

AN exploration company drilling for gas and oil in Seaspray has found significant onshore oil flows.

Lakes Oil will be conducting exploratory drilling work at three sites in Seaspray in coming weeks.

For the last few weeks Lakes Oil has been working at a site known as Wombat 3, where Strzelecki oil has been flowing from a natural fracture that was previously hydraulically fracture stimulated.

Since the discovery oil is continuing to flow freely into the well bore along with gas and fracing fluid.

Lakes Oil executive chairman Rob Annells said the discovery was geologically significant, as Lakes Oil believes it to be the first nonbiodegraded oil flow recorded anywhere in the onshore or offshore Gippsland Basin.

"We are delighted with the results from Wombat 3, which has produced the first free flowing oil onshore in the Gippsland Basin from the Strzelecki Group,'' Mr Annells said.

He said operations at Wombat 3 had now been suspended pending the arrival of production equipment.

"At this stage, it has been difficult to measure the fluid inflow from the lower zone as gas and water from the upper zone at 1420m is flowing into the well bore at a higher rate and therefore impeding the oil flow from the lower zone,'' Mr Annells said.

"Our plan is now to run a production tubing string into Wombat 3 down to the oil zone which will enable us to more accurately assess the flow rate that can be achieved from the lower zone.

"We expect the flow rate to improve as the oil will not be impeded by the water flow from above. The reduced diameter of the production pipe will also assist in increasing the flow.''

Meanwhile work is beginning at a site known as North Seaspray 3.

Lakes Oil will begin the removal of fracture fluid that was left in the well when it was originally hydraulically fractured in 2005 and hope it will yield an unimpeded gas flow from the area of interest.

Fracing work is also about to begin at another site called Wombat 2.

"By achieving commercial flows from the wells we will have opened up a valuable new Victorian energy resource,'' Mr Annells said.

"Moreover, the gas contains 98 per cent methane and virtually no carbon dioxide, unlike other gas being used in Victoria.''

Go LKO.

Holding LKO at .004c :)

YOUNG_TRADER

3rd-July-2009, 04:14 PM

LKO closed at a new high of 1.6c today, all I can say is wow! Today was such a negative red day and yet LKO contines to go from strength to strength

RP_Automotive

3rd-July-2009, 05:07 PM

I too am surprised, I thought they would pull back to 1.3 or 1.4c in the last 10 mins...they did a couple of times and I watched them close @ 1.5c...Lucky I checked here cos I wouldn't have know they actually went to 1.6c!

Absolutely massive volume too: 347,010,390

Holding @ 0.5c....good luck to all!

BESBS Player

3rd-July-2009, 06:56 PM

Great to see LKO hold up so well today, as YT says, given the general negative market conditions. As I see it, it might retrace very slightly or hover until the next news release. When Wombat 3 news comes in, a good result will put a rocket under this. Any good news on the oil front would be an even bigger bonus. I can see 2.5c being easily made if the initial results for Wombat 3 are good. If results from Wombat 2 and 3 are then sustained over a longer test period, it would be woooshka...:D

In keeping with my usual discipline, I have sold 20% to lock in profits (265% profit). I'll be keeping the rest until Wombat 3's initial rates come in and then assess things from there.

Have a great weekend LKOers!

Holding LKO at .004c :)

fureien

7th-July-2009, 12:52 PM

nioka

7th-July-2009, 01:39 PM

wow LKO held up pretty well so far today.
do u know when the wombat 3 result are likely to be released? i dont mean a specific date, more like are we talking weekly, several weeks, months?
i want to know because im interested in this stock, except i have to ration my capital

As a long term holder of LKO I suggest you carefully examine the risk you are prepared to take with your "rationed"capital.

LKO is still very much a spec stock. We have been at this stage a few times in the past. Usually an SPP after a spike on some news but never in the past followed up with the really good news. There has been a lot of spin put on a very small oil "flow". Maybe it will be commercial, maybe not. They have a good story to tell. I'll wait for the proof. I'll be happy if is good enough for me to break even. I'll be very happy if it gushes.

After all they are one of the oldest oilers in Australia and their SP is still measured in fractions of a cent. There may be big gains but there is big risk.DYOR.

YOUNG_TRADER

7th-July-2009, 03:08 PM

Having missed the high of LKO of 1.7c yesterday I sold a few more today as part of a overall capital preservation/profit protection strategy

I think TSV's drop is hurting LKO as they are comparable plays

BESBS Player

11th-July-2009, 02:00 AM

After careful consideration, I have sold LKO late this week. While I fully understand many traders wishing to hang tight until results are known, I am a conservative player (hence the BESBS philosophy as I hate not making money on a deal) and have moved for the following reasons:

a. Wombat 2 always had a high probability of successful initial flow rates as we already knew that gas existed! This news caused a spike of approx. .006c when it occurred. Easy money :)

Now the following exists IMHO:

b. Wombat 3 has gas and oil (so should also spike the SP as Wombat 2's initial flow rates did.) However, the presence of c. oil might well mean that extra/new equipment is required to flow test this. If so, it would take a few weeks (minimum) to get it to the site. This means no results for several weeks.

c. Seaspray (another play that should spike the SP on initial flow rates) will be tested using the same equipment used for Wombat 2. As this will only commence after Wombat 2 (as they shall use the same equipment), LKO management will have the extended flow rates for Wombat 2 PRIOR to Seaspray or Wombat 3 initial flow rates.

Put simply, if my summary is correct (and time will tell), the next result shall be the much higher risk/high reward Wombat 2 extended flow rates. In order to protect capital and profits, I have exited LKO for the interum until Wombat 2 extended flow rates are released to the market.
If Wombat 2 is a winner, well done to those who held through the risk. I will most likely jump on board again (in a smaller play) to ride the lower risk initial flow rate announcements from Seaspray and Wombat 3. If Wombat 2 disappoints or runs into technical difficulties, I have protected capital and have a much cheaper entry point later on.

Apologies to all if this sounds a boring approach but I do believe that it is a way of protecting capital, securing an already great profit, and allowing one to return for an extra crack at some cream on the cake while removing much of the higher risk associated with the potential higher reward of Wombat 2's extended flow result.

Best of luck to all holders.

Bought in to LKO at .004c. Sold out at ave. 1.5c. Profit after expenses c. 270% :)

Adam A

11th-July-2009, 08:55 AM

Congratulations on your profit,and thanks for sharing your thoughts

LKO seems to be attracting a lot of interest(highest ammount of trades on the asx for the last few days)

Im in at 0.015 for a bit of fun ie small amount

good luck all

YOUNG_TRADER

13th-July-2009, 10:37 AM

BESBS I too today have done the same

Having been in for a few months now and watch the stock appreciate 300% its hard not to lock in profits and really I have just become a bit impatient

Though I have already found somewhere to park my profits ;)

After careful consideration, I have sold LKO late this week. While I fully understand many traders wishing to hang tight until results are known, I am a conservative player (hence the BESBS philosophy as I hate not making money on a deal) and have moved for the following reasons:

a. Wombat 2 always had a high probability of successful initial flow rates as we already knew that gas existed! This news caused a spike of approx. .006c when it occurred. Easy money :)

Now the following exists IMHO:

b. Wombat 3 has gas and oil (so should also spike the SP as Wombat 2's initial flow rates did.) However, the presence of c. oil might well mean that extra/new equipment is required to flow test this. If so, it would take a few weeks (minimum) to get it to the site. This means no results for several weeks.

c. Seaspray (another play that should spike the SP on initial flow rates) will be tested using the same equipment used for Wombat 2. As this will only commence after Wombat 2 (as they shall use the same equipment), LKO management will have the extended flow rates for Wombat 2 PRIOR to Seaspray or Wombat 3 initial flow rates.

Put simply, if my summary is correct (and time will tell), the next result shall be the much higher risk/high reward Wombat 2 extended flow rates. In order to protect capital and profits, I have exited LKO for the interum until Wombat 2 extended flow rates are released to the market.
If Wombat 2 is a winner, well done to those who held through the risk. I will most likely jump on board again (in a smaller play) to ride the lower risk initial flow rate announcements from Seaspray and Wombat 3. If Wombat 2 disappoints or runs into technical difficulties, I have protected capital and have a much cheaper entry point later on.

Apologies to all if this sounds a boring approach but I do believe that it is a way of protecting capital, securing an already great profit, and allowing one to return for an extra crack at some cream on the cake while removing much of the higher risk associated with the potential higher reward of Wombat 2's extended flow result.

Best of luck to all holders.

Bought in to LKO at .004c. Sold out at ave. 1.5c. Profit after expenses c. 270% :)

F Flintstone

13th-July-2009, 05:18 PM

AHHHHH!
I bought these shares a couple of weeks back and was then buoyed by the enthusiasm of the believers contributing to this thread but it seems that my faith (and infinite greed) may have been misplaced. Both the believers and the share price are in retreat. I can see that I'm going to be left holding the (rather empty) LKO bag. Someone please steel my resolve to hold these shares! Please! Please! Please!:banghead:

happytown

16th-July-2009, 11:30 AM

lakes oil rights issue announced - 1 new share for every four held at issue price of 1c - record date 24/07/09, to raise approx $11M

cheers :)

fureien

20th-July-2009, 01:25 PM

lakes oil rights issue announced - 1 new share for every four held at issue price of 1c - record date 24/07/09, to raise approx $11M

cheers :)

does that mean if we buy before 24th of july we have the option to purchase these bonus issues? is there any reason to do so? market price sitting at 1.1 - 1.2 cents currently, even if i get in at 1.1 cents would market revalue it down to 1 cent?

Sennej

20th-July-2009, 01:37 PM

You would need to buy soon to be on the register by the 24th. Need to check with your broker how long the settlement period is.

I will be taking up my entitlement & am hoping LKO will continue to rise on further news releases.

fureien

21st-July-2009, 01:14 PM

settlement is 3 days
which means today is pretty much last chance for me

but there are so many buyers at 1.1 cents and ironically there isnt much movement.

do they send u a letter after the 24th? cause i heard about other companies using bpay and it sounds a bit risky with no documentation

also, this is just from prior observation. but if i buy today at 1.1 or 1.2 cents and then take up the entitlement on the 24th. wouldnt there be alot of on market selling of people trying to make an arbitrage. and the price will eventually get knocked down to 1 cent eventually anyway and there is no need to take up the entitlement when u can buy on market.

nunthewiser

21st-July-2009, 01:49 PM

2nd attempt .

YOU CANNOT BUY TODAY AND RECIEVE THE ENTITLEMENT . READ THE BLEEDING ANNOUNCEMENTS! IT ALREADY WENT EX ENTITLEMENT YESTERDAY THE 20TH JULY ..MEANING U HAD TO BE IN IT ON FRIDAY

no offense intended but geez read the bloody announcements or get another bloody job !

hi joe :D

fureien

23rd-July-2009, 10:58 AM

oh ok doesnt matter thoguh sp dipped to 1c as i expected today anyway. i bought in at 11 cents. people are still buying at 11 cents so it doesnt look like it will dip too much

BESBS Player

24th-July-2009, 03:03 PM

G'day all.

As I suspected, no news came from Wombat 3 (hence one reason given above explaining why I jumped ship at 1.5c ave) and now we have just closed the SPP.

The scenario now looks this way to me:

* Capital raising now closed. While it butchered the SPP,this has given the general holders a chance to get in at 'Patterson's rates' before more news arrives. Any shortfall will probably end up with Sophisticated Investors (inc. pattersons?). This way, everyone has a chance to get some cheapies...

* Capital Raising has now capped the price around 1-1.1c.

* Wombat 3 shall be some time off yet. By the time they get the new equipment to test this, we could have Wombat 4 underway. Not likely but possible.

* Wombat 2 is more technically challenging than first assumed (given the announcements). It should take a little while to establish sustained flow test results. Basic equipment appears to be already headed for Seaspray.

* Given the potential delay in news from Wombat 2 given recent technical issues (& 3), the chance of the next significant release being initial flow rates from Seaspray increases. Given that we already know that some gas exists, the odds of positive news at the initial flow rate stage are better than usual.

Finally, this is simply my ponderings and I could be (and most likely will be) wrong! That said, I am starting to buy LKO again while the SPP keeps a cap on the SP in the short interum. The risk also exists that many of the 1c SPP stock could hit the market once Seaspray news is released. Nevertheless, that would only take some gloss off the excitement in Vic. if this project appears to continue to have some success.

Good luck to all holders.

BESBS Player

27th-July-2009, 08:16 PM

Nice announcement out today by LKO.
Nothing earth shattering but a good way to keep LKO in the news and it does help highlight the potential of tight gas plays in the future of the energy sector in Australia. :)

Holding LKO

nunthewiser

11th-August-2009, 12:22 PM

Volume spike on this little pound pup if anyone intrested........... no idea why but it just showed up on my abnormal volume scan .

i hold a few freebies

Sennej

11th-August-2009, 03:09 PM

Yep nice spike. Are people out there taking up their entitlement? I am & am hoping for a continual rise from LKO. Hopefully they will release some positive news soon..

fureien

11th-August-2009, 03:34 PM

Volume spike on this little pound pup if anyone intrested........... no idea why but it just showed up on my abnormal volume scan .

i hold a few freebies

you have a program that scans for abnormal volume?

or did you mean you manual look? ive had a problem that theres too many stocks to check indivudally and most stats provided by brokers usually just show the top 20.

back on topic though. Yes the spike put a smile on my face
i managed to double my holdings when my buy order got processed at 10 cents a few days ago and i didnt have to take up entitlement lol.

the interesting thing is that there was a stalemate between 10 and 11 cents and now that 11 cents has finally broken through, we have seen a spike. personally from a chartists point of view, it might keep going higher, because 10 cents has been set as a nice support. Quite similar to SDL

happytown

14th-August-2009, 01:47 PM

lakes have just released an ann regarding an independent asset valuation

...

This evaluation will now allow shareholders to understand how the company has grown with its strategic gas/oil drilling/fracing programs.

These assets are now valued (P50 basis) at between $104 million and $217million (see table below).

Note that the current market capitalisation of Lakes Oil N.L (including all of its exploration assets as well as cash) is approximately $44 million.

...cheers :)

another quality post brought to you by happytown inc
... and for no charge

gfresh

14th-August-2009, 05:31 PM

philly

16th-August-2009, 09:09 PM

Whilst LKO has recently announced increased estimates for the Gas In Place [GIP] from the Wombat field there is a big difference between GIP and having a productive commercial gas field as the Warro gas field in WA has shown. Whilst the technology has improved the recovery of tight gas is still at the embryonic stage and IMHO I don't expect that the SP will take off quite yet. Nonetheless I remain a happy holder:)

fureien

17th-August-2009, 01:55 AM

haha.. scan just came across this one.. interesting eh..

Reminds me a little of PPP, un-noticed for so long, with cash reserves above it's market cap.. took a few months for the market to catch on though.

out of curiosity you normally find information about cash reserves in the financial statements right? and the ratio between market cap and reserves you have to compare and calculate yourself right?
unless theres a nice ratio we can use that i dont know about.

so isnt it normal for it to go unnoticed, theres alot of companies and although its some people's bread and butter to do these kind of analysis, its just impractical to go through every company without a good reason, therefore its normal for the market to realise slowly as people accidentally come acrross the figures right?

unless of course they all happen to sign up to forums where each company has a band of loyal followers who have always kept track and notice every change.

btw when u say "scan" how do u "scan". do u have a program or manually?

gfresh

17th-August-2009, 09:30 AM

I came across it using a scan for volume that has increased over the EMA of volume in the last 20 days .. using Amibroker. Which I do when looking for new opportunities. Just a technical scan, which may turn up anything worth looking at account statements, announcements, what else is going on, etc to see whether there is any potential or whether it may move.

As you say, looking at accounting statements is often pretty valuable, but it does require some knowledge of that area (not claiming that I myself do).

Often these grand "valuation" statements can be pie in the sky stuff, but they sometimes are worth looking at.

happytown

17th-August-2009, 03:58 PM

and lakes clarifies the recent independent valuation as annd on 14/08/09, thusly, today

...

On 14 August 2009 Lakes Oil N.L. released details of the Asset Valuation complied by Palliser Strategic Management for the Wombat, Trifon, Gangell and Seaspray structures in PRL2, onshore Gippsland Victoria. As stated in that release, those assets are valued (P50 basis) at between $104 million and $217 million.

Lakes Oil N.L. holds a 100% interest in the Wombat structure, and holds a 50% interest in the Trifon, Gangel and Seaspray structures. Accordingly, Lakes Oil N.L. wishes to clarify that the Lakes Oil N.L. held component of those assets are therefore valued (P50 basis) at between $79 million and $155 million. The accelerated growth price scenario becomes $116 million to $155 million.cheers :)

another ... you know the drill

BESBS Player

18th-August-2009, 12:14 PM

Nice to see an announcement about the oil. Although it is great to read about the quality of it, until we know the quantity there is little to excite the market. In a similar way, the recent updated estimate reserves help encourage the market but need to be proven (a point well made by Philly!)

That said, it is great to see LKO management trying to keep positive news in the market to ensure the greatest take-up of the SPP possible. This is exactly what they should be doing and credit to them for it as cash is gold in this market.

Once we start to get any positive news from Wombat 2 or 3, or the start of drilling at Wombat 4, we might get some SP lift.

I have taken up my allocation but no more. As posted earlier, I took my 265% profit at 1.5c and then re-invested 20% of the profits at 1c. Happy to hold now and watch for the next month or two as the story unfolds. :)

Good luck to all holders.

wtang89

19th-August-2009, 01:35 AM

BESBS Player

19th-August-2009, 12:59 PM

Hi Wtang,

I know some people give estimates but so much depends upon these becoming reality and the order of announcements. Drilling issues can dampen enthusiasm as well.
I'll be happy with 1.6c-2c in the next 2 months but would love much more...

Holding...

philly

19th-August-2009, 02:58 PM

BESBS, wow good job man, nice play :P. I only recently took notice of LKO, still looking for an entry point at around the 1.1c mark. You have an estimate on the value of LKO? atm it seems like its in the process of something big but still early days i guess.

Hi wtang89,
I agree with BESBS Player. As a long term holder of LKO there are just too many "ifs". Sure there is plenty of potential if the finds prove to be commercial but that may be some time before we know. The other consideration is the number of shares on issue. LKO is not shy to rattle the tins for more cash and increases in the number of shares on issue will dilute the value per share. In the short term a SP of between 1.5 and 2 cents would be a good result for long term holders and would still be a reasonable entry point for new investors. Hopefully, in time we will look back and congratulate ourselves for getting in at such a bargain price.:)

wtang89

23rd-August-2009, 12:44 AM

Hey guys, after looking over the financial statements and the recent announcements i bought myself a nice parcel on friday at 1.1c. Hopefully this company blows up like EXT, MEO or BUY in recent weeks. While this company seems to have alot of shares issued, i noticed it has very low debt levels (both current and non-current) so im not too worried about that. Maybe the management isnt a fan of debt financing...As i understand it, an asset evaluations was done which puts the value at 80-150 mil, with 44m in shares and low debt levels, it seems like a steal to me? What you guys think? Can the market be slow in realising its value? What exiting prices are you guys thinking?

nunthewiser

23rd-August-2009, 07:07 AM

BESBS Player

31st-August-2009, 08:12 PM

Just read through the ASX release today.

Today's announcement holds hope despite the delayed results at Wombat 2. Fraccing can take time and trying to clear wells is not always a quick job. That said, we have reduced gas flows still coming through and given time and effort (and it appears that Rob Annells is going to throw everything he can at this job), there is still much hope that Wombat 2 will flow pleasing rates.

The results of the SPP is a bonus. Cash is gold in this market and an additional $9m+ means that Wombat 4 and other drilling activities will be covered. Who knows...wonder if Pattersons will jump on board again as they have supported LKO recently during this campaign?

Finally, we have another well about to drill. Wombat 4, given the proximity to the other sites in the project, has a better than the usual wildcat chance of success. September is not long away! If Wombat 4 gets underway and hits good flow rates, LKO might be in for a good October. Wouldn't it be nice to see a small SP run before Wombat 4, then a positive release regarding Wombat 2, then good flow rates from Wombat 4???!!! No guarantees but the chance exists as all three of these activities are due to occur in the next few weeks.

IMHO, now is the time for LKOers to hang on for another month and see what the drilling brings...

Holding again at 1.05c ave

fureien

31st-August-2009, 09:47 PM

out of curiosity how many units are u holding? i bought a parcel idiotically during the exentitlement period, even though i knew it wud drop to 1 cent eventually. I just wasnt sure if my order wud get processed with 100+ buyers and low volume lol. Somehow i managed to get it processed and still have 100 more buyers after me. Lowered my average, inceased my holding and watched it go up. sweet as :P

YOUNG_TRADER

31st-August-2009, 11:14 PM

Back in are we BEBS? I want to but for some reason after first buying at 0.005 I just cant seem to commit to bring myself to buy at 1.1c-1.2c even though the 1c capital raising has now put a 1c floor on the stock for the next few weeks/months at least

Watching from the sidelines

BESBS Player

1st-September-2009, 10:14 PM

Hi YT.

Back in but small play this time (only hold 2m - to answer Fureien's query) as I just returned 20% of past LKO profit (see earlier post). Guess I feel somewhat insulated due to earlier result and the fact that the 1c SPP has, as you say, placed a floor under the SP for the moment.
Not expecting mega-results here but would love to see the SP in the 1-5c - 2c range on news in the near 2 months. Time will tell but as I have posted below, LKO do have some activities occurring that give them a chance to do this if they have some luck.
I can understand your comments and hesitation. Guess I am happy for a (hopefully) smaller profit than before.

Cheers,

BESBS Player

fishyfallow

8th-September-2009, 03:43 PM

To quote from business spectator

Lakes Oil directors buy shares via subscription

TOP NEWS
Optus renews call for telco industry reform 2:49 PM
Packer, Jacob resign from Challenger board 2:41 PM
Business confidence surges to highest level since 2003 2:20 PM
Fuld says 'let them line up' as Lehman anniversary approaches 2:29 PM
Suncorp launches $750 million 4-year bond 12:24 PM

THE SPECTATORS
Bartholomeusz: A new ceiling for leverage
DEALS TV: Sweet surprise
Gottliebsen: The risk of mega-brand mergers
The second wave of the GFC
Kohler: Easing Telstra's burden

Source: News Bites

Lakes Oil NL director Robert Annells bought 15,424,084 shares for $154,241 by subscription on September 3, 2009.

He holds 79,237,259 shares and 30,000,000 options.

Director Barney Isaac Berold bought 4,955,834 shares for $49,558.

He holds 24,779,166 shares.

Director James Syme bought 1,000,000 shares for $10,000.

He holds 3,172,771 shares.

Director Peter Begg Lawrence bought 7,550,000 shares for $75,500.

He holds 35,750,000 shares and 15,000,000 options.

STOCK DASHBOARD: September 08, 2009

BESBS Player

8th-September-2009, 03:58 PM

Yes, Fishy.
Noticed that Rob Annells supported the latest SPP.
This gives me some confidence that we might see some good news along the line. Hoping...

Jez

10th-September-2009, 02:13 PM

Perhaps this share buying by directors is in order to hold a certain % to reduce dilution. I wouldn't get too excited just yet!

BESBS Player

14th-September-2009, 02:52 PM

Either way Jez, they would only put their own $$$$ into a company if they thought that they would (at the very least) break even or benefit.

Given I am already up 265% on my first trade with LKO earlier this FY and I have only placed 20% of profits back in, I'm happy to wait and see if I can feed again from the same trough ;).

BESBS Player

18th-September-2009, 11:28 AM

Article from Monday's Herald-Sun. Looks like we don't have long to wait for the next wave of action in Gippsland:

LAKES Oil chairman Rob Annells is not having a lot of luck in the football this year.

His beloved Churchill Cougars failed to win back-to-back premierships in the North Gippsland league last Saturday, falling by 29 points to Heyfield.

Now Rob has his gaze firmly fixed on the last weekend in September for a grand final of a different sort as Lakes prepares for the arrival of a rig to drill its first major Gippsland Basin well after producing a three-dimensional seismic survey of its acreage.

"This well is very, very important," said Rob, who has long been an industry pioneer for the discovery and development of gas and oil in "tight" sandstone formations near Seaspray.

While nothing is ever certain in exploration, the location of the Wombat 4 well has been greatly helped by the 3D seismic, which revealed a sort of double-dome formation.

Start of sidebar. Skip to end of sidebar.
.End of sidebar. Return to start of sidebar.
The drill will be penetrating the weathered top of this second dome and if Rob wins the exploration grand final, gas might even start to flow freely without the usual fracturing and underground stimulation that encourages the sandstone to release its tight grip on the gas.

Even if that doesn't happen, a second hole with a different target depth and the use of advanced US fracturing techniques could still see Lakes Oil's significant investment over 63 years finally pay off with a move into commercial production.

A good drilling result within three months would also allow the Lakes board to place or otherwise offer the final shares in a recent one-for-four issue at 1 which raised $9.3 million out of a possible $11 million.

There have been some positive signs for Lakes recently with its Wombat 2 well producing an impressive stabilised gas flow of 1.35 million cubic feet a day after being refractured and producing oil very similar to that produced in offshore Bass Strait.

Holding LKO

Putty7

18th-September-2009, 03:20 PM

Thanks for the update BESBS player, it certainly is looking like Lakes may have some action soon, I also noticed in releases on the 8th that director Barney Isaac Berold purchased 4,393,612 shares on market for .011c on the 4th September, may mean nothing but it is good to see that the upper echelons are still investing and are committed to the result as well. :)

DVEOUS

22nd-September-2009, 12:26 AM

I'm looking for a short term oil play, and LKO has caught my eye.
Floating around 1c it initially appears to be another penny dreadful... but I don't know.

Wombat 4
Equipment has begun arriving at Lakes Oil N.L.’s Gippsland operations base in
readiness for the drilling of Wombat 4. We are still expected to spud this well in
late September.
With only a week or so to go, this must be coming up very soon.
BESBS Player, have you any new thoughts on LKO?

I note that you hold OEX too, and I am torn which one to throw some money into this week.
LKO's Wombat 4 soon to spud and OEX's pending rig announcement.
Maybe take an each way bet on both,like you have done.

BESBS Player

29th-September-2009, 03:40 PM

G'day DVEOUS.

Yes, I tend to spread across a few BESBS oil & gas plays.
I noticed today that the SP is starting to nudge 1.2c; certainly looks like 1.1c is being tested. Given the purchases by management in recent times, I reckon Wombat 4 is worth a ride given we also have the potential wildcard action of either Wombat 2 or 3.

Happy to hold for another feed in the LKO trough :)

DVEOUS

1st-October-2009, 03:40 PM

Another 110,000,000 shares coming onto the market.

Did you see the options bit:

46,500,000
Options exercisable @ 5 cents each expiring 17.11.09

26,400,000
Options exercisable @ 7.14 cents each expiring 17.11.09

9,850,000
Options Exercisable @ 3 cents each expiring 17.11.09

9,850,000
Options Exercisable @ 1.5 cents each expiring 09.11.13

Hmmm.... 5 cents in 6 weeks time.
Does this mean the Directors are expecting some big moves in the SP soon?
Otherwise, why would they be at ~five time the current SP?

TabJockey

1st-October-2009, 05:58 PM

Not sure but today closed at 1.2c, a one month high. That rig of thiers should be at wombat 4 pretty soon i would think, then we will know if we have backed a winner.

Putty7

1st-October-2009, 10:59 PM

Hope u r Besbs, 5 cents would be sweet, seeing Wombat 2 cleaned up would be a good result, a lot of time and effort spent on it, Wombat 4 free flowing would be a Godsent for the sp but not holding my breath on that one, at the least the mistakes made on Wombat 2 should be learned and not made again with Wombat 4

skyQuake

2nd-October-2009, 09:37 AM

They've been drilling there for longer than I've been alive and still haven't found anythign substantial. Every 2 years or so they've been raising money from 1987, tapping funds... With over 5 Billion shares on issues, its so diluted that I cant see any decent mid/long term outcome for holders.

BESBS Player

5th-October-2009, 09:31 PM

G'day Dveous.

Just seen the options.
Not sure if the 5c options are serious but made to look like management are being expected to perform to get the $$$. The 3c options look like the carrot and the 1.5c look like being the insurance package! Might sound easily pleased but if they make the 1.6c target soon, at least we should be all sitting on a good profit ;)

3c is an outside chance. If Wombat 2 or Wombat 3 come in with good news and Wombat 4 is spudding, the SP could run as the media would love the story (we saw a hint of this in July). Wombat 4 with strong flow rates on testing would also see SP lift off. Absolutely no guarantees but LKO does have these 3 projects all capable of impacting the SP if things went well.

Watching, holding and hoping...:)

Putty7

13th-October-2009, 10:34 AM

New ann this morning, Lakes to spud Wombat 4 by end of week, be interesting to see where we go from here.

WOMBAT 4 UPDATE
The rig is now on site. We have been delayed by two weeks due to further approvals being required, which are now in place. Final preparations are currently in progress which should see us spud-in the well late this week.
Wombat 4 will be the first well drilled onshore Gippsland Basin with the benefit of 3D seismic. We have had the 3D data independently interpreted, which indicates that the Latrobe Group which lies above our traditional Strzelecki target has a separate closure from the greater Wombat structure. This opens up the possibility that we could have hydrocarbons trapped in the Latrobe. The Latrobe structure is bounded by major faulting giving the opportunity for migration from below. We will fully assess this zone whilst drilling, but will not test, even if hydrocarbons are present, until we have completed the well and set casing.

Only part of the ann with regards to the drilling, a bit of other stuff regarding options to employees and directors etc.

BESBS Player

13th-October-2009, 11:22 PM

G'day Putty,

If LKO can hold around 1.2c, then we might get some trader activity as spudding occurs. While Wombat 4 is a wildcat (hence increased risk), the reward of drilling success could get interest in LKO going again.

Wishful thinking but I'd love good news from Wombat 2 or 3 during the drilling of Wombat 4. News overdue (always a worry at some level) but I am comforted by the recent buying by directors.

Holding LKO at 1c ave (2nd time in the trough)

Putty7

14th-October-2009, 12:59 PM

I think you are right Besbs, someone came in and just took the 1.2c floor in one hit, 81 million shares through today so far and the interest is there early which is good, sitting with a nice buffer at 1.2c and buyers are in at 1.3c. I agree that news on Wombat 2 being sorted out would be a good kicker, Wombat 3 im not so sure about as they havent given any indication of oil volume and havent made a decision either way yet on how they are approaching it, I assume it also has gas also as it was fracced but not much mentioned about that or I havent taken it in, one of the two, looking good so far and after a quiet month good to see some excitement in the share again.

BESBS Player

15th-October-2009, 05:19 PM

G'day

Yes, I agree that Wombat 2 is the more likely source of upcoming good news (if it comes) from the previous drilling action from mid-year.
Certainly looks like the punters are getting set for the spud announcement at Wombat 4. SP has risen on good volumes from 1c (low) to finish 1.3c today in roughly a week. :)

Looking forward to spudding soon. (Maybe by weekend according to announcements?)

Holding LKO at 1c ave

Putty7

19th-October-2009, 12:44 PM

Lakes Oil N.L. advises that its Wombat-4 well was “spudded in” on Saturday 17th October onshore Gippsland Basin and is currently at a depth of 302m. Surface casing is currently being set and it is expected that the well will resume drilling in the next 24 hours.

And away we go, holding 5m at 1.1c, news of the partly paid shares at 1.5c may be a staller or maybe set a new short term floor within the drilling window, hopefully they will have the legs to run on.

BESBS Player

19th-October-2009, 12:55 PM

Hi Putty,

Spud news is good news!

Also see this in today's The Age:

Strengthening oil price puts heat among minnows
GARIMPEIRO / BARRY FITZGERALD
October 19, 2009

LAKES OIL The hardiest of our junior oil and gas explorers, Rob Annells' Lakes Oil (ASX: LKO), has drilled more wells than you can poke a stick at in the last 63 years. But it has yet to notch up a commercial discovery.

It is, however, as persistent as ever and is back for another try with the about-to-spud Wombat 4 well in the onshore portion of the Gippsland Basin. The offshore portion of the Gippsland Basin is home to the Bass Strait oil and gas fields and Lakes is intent on proving that the onshore portion also has commercial oil/gas potential.

This well is different from all the rest drilled by Lakes in the region in that it's the first to be drilled with the benefit of three-dimensional seismic data interpretation. That interpretation suggests that Lakes' traditional target in the Strzelecki formation is thicker in the Wombat 4 location and that there is a separate closure in the over-lying Latrobe formation - the formation that is so prolific in the offshore Gippsland Basin.

The drill bit will tell us what all that means at the end of the day. What is known is that with a share price of 1.2¢ and billions of bits of paper on issue, Lakes is a day-trader's dream. Confirmation of the start to drilling at Wombat 4 will be enough to cause a flurry of activity in the stock.

Happily holding LKO again at 1c ave

BESBS Player

23rd-October-2009, 02:58 PM

Rightly or wrongly, I have finished selling out today.

As I am a preferred BESBS player, Wombat 4 is a wildcat (although it is in a good location) and therefore I do not usually wait to the end.
In theory, I could have waited as there are a few levels to test but a wildcat risk is still that for me - a wildcat risk.
My other concern has been the lack of detail on Wombat 2 and 3. If we had positive news by now, I might have stayed. This is now a high risk play IMHO. Wombat 2 and 3 are still works in progress, and Wombat 4 a wildcat.

Decided to take the small profit and get set in the following plays:

OBJ (helped to top up)
OEX (topped up)

For the sake of holders and management, I'd love to see LKO finally hit the jackpot. With my more conservative approach, I think I have milked LKO for as much as I can. Safer money can be made elsewhere at present. Good luck to all holders and the chances of early gas shows in Wombat 4 are still good (by wildcat standards).

Trade One (July): 265%
Trade Two (October): 25%

Putty7

26th-October-2009, 11:12 AM

New announcement today from Lakes concerning current drilling....

Lakes Oil N.L. advises that its’ Wombat-4 well, onshore Gippsland Basin is
currently at a depth of 1204m. During the drilling of the Latrobe Sands
several zones were encountered where elevated gas readings at above
background levels were encountered. It will not be known until electric logs
have been run as to the significance of these “shows”.
Currently the plan is to drill some 20-30 metres into the Strzelecki expected
at 1,311m and then run electric logs prior to running casing to the top
Strzelecki.
Should gas be encountered at the expected weathered zone at the top of the
Strzelecki it is proposed to carry out a drill stem test, then to drill on to total
depth currently expected at approximately 2,000m.
Any zones of interest detected in the Latrobe will at that time be tested,
before a 4½” casing is run to the bottom of the well.

SP is still pre nr so not sure what this will do yet, no tested quantity or quality but its good to see Gas shows in the secondary target, fingers crossed for the next one.

DVEOUS

26th-October-2009, 11:46 AM

It was a bit of a nothing report, yet tagged as "Market Sensitive".
I calculate they are drilling around 130m per day, so they should reach that 2000m target by next Saturday.

They need to use some of the marketing hype in their releases that Sandfire Resources have been boring us with: "Spectacular results", "Exciting results";)

Putty7

26th-October-2009, 12:27 PM

Yes has been a long time Wombat watching, they dropping the wire line in after they drill Strzelecki so another 130m - 140m and we should have a result of some sort for both Latrobe and Strzelecki groups, all going well it wont be a duster.

Putty7

29th-October-2009, 11:11 AM

Good announcement today for Wombat 4 well, good to see gas readings are well up and all going well will be of commercial quantity without having to fracc like the other wombat holes, time will tell.

Lakes Oil N.L. advises that at 9am this morning Wombat-4 well, onshore
Gippsland Basin is at a depth of 1378 m.
The top of the Strzelecki Group was intersected at 1350 m, at which time
gas picked up significantly and gas readings containing up to C5 were
recorded.
Our plan is to now pull out from the hole and set 7” casing and then drill
another 20-50 m before conducting a drill stem test in the Strzelecki to
evaluate the gas and any liquid hydro carbons which may be present.
We expect the gas at the top of the Strzelecki Group to flow at better rates
than in previous Wombat wells. All wells drilled so far into the Strzelecki
Group have had gas all the way to total depth.
During the last few days we have run electric logs over the Latrobe Group
and have noticed several interesting zones. A decision as to whether these
zones will be tested will be made after independent assessment of the logs.

TabJockey

29th-October-2009, 11:49 AM

We wont see any SP movement in this macro climate though, there is allot of red on my screen. Funny I was watching Lateline business on monday and some dude forecast a correction this week. Its a good time to have some cash aside to buy.

Putty7

29th-October-2009, 12:31 PM

Think you may be right I have gotten out for a slight profit at .012c, expected a bit more enthusiam from the market than what was there, plus MEO at .53c was to tempting to go past :)

fureien

2nd-November-2009, 03:13 PM

i sold half my LKO at 13c bought at 11c
i still have my second half i bought after the capital raising at 10c, with more buy orders at 10c.

10c seems to be a very strong support so i only have to worry about securing profits lol.

10% profit per sp movement is so nice when it moves up but so painful to watch when it drops lol.

Its starting to annoy me that its only taken off twice since the capital raising. are there any significant announcements we are waiting for?

prawn_86

2nd-November-2009, 05:17 PM

10c seems to be a very strong support so i only have to worry about securing profits lol.

Looks to me as though 1c is support. I dunno what stock your watching. If you bought at 10% your down 90% :confused:

Dreadweave

2nd-November-2009, 06:31 PM

Looks to me as though 1c is support. I dunno what stock your watching. If you bought at 10% your down 90% :confused:

Im assuming he means 1.0 cents not 10 cents, Simple misplaced decimal point :]

And he is saying that when it moves up it moves 10% each time, but when it falls it also falls 10% :]

TabJockey

3rd-November-2009, 02:29 AM

People are waiting to see if Wombat 4 will be commercially profitable, you have to remember this company is at 1c because it has NEVER MADE ANY MONEY.

DVEOUS

4th-November-2009, 12:02 PM

Putty7

4th-November-2009, 12:10 PM

Hope it does well for you Dveous, I'm already out of these but the interest is still there to see them do well, a lot of people have been waiting for these to move and I still have friends who hold them, good announcement and hopefully when they add volumes it might spark up a bit of interest, the lack of anything concerning Wombat 2 was a worry for me and if I had been a bit smarter would have followed BESBS Player out and gained a few more dollars rather than bail out later when I did.

Agentm

4th-November-2009, 02:26 PM

Positive news, that didn't quite excite the market as much as I expected:

---
WOMBAT 4; GAS FLOW TO SURFACE FROM STRZELECKI RESERVOIR

Lakes Oil N.L. announces that at 10 a.m. this morning its Wombat 4 well ,
onshore Gippsland Basin, was at a depth of 1680 m and drilling ahead.
A drill stem test was conducted over the interval between 1383 m and 1478
m in the Strzelecki Group tight sands which flowed gas to the surface at an
undisclosed rate. The total gas readings contain predominantly methane
(C1) with other hydrocarbons up to C5.

The proposed total depth of the well is 2000 metres.
---

Anyway, I'm finally in at 1.1 cents.
IMO, there is a lot of upside to this, and the very strong support at 1.0c suggests minimal downside.

how many non disclosed rates from a drill stem test have turned out to be 7mmcfpd flows?

imho these rates are generally marginal and possibly not worthy of reporting in case they dribble off and cant even light a candle later..

i think if you have something to report, report it completely and dont do non disclosures on flow rates. ip rates are important and tell you a lot.

it would be remarkable if a report like that would generate excitement in the share

speculation on prospectivity would have to be neutral to maybe negative?

Dreadweave

4th-November-2009, 03:53 PM

how many non disclosed rates from a drill stem test have turned out to be 7mmcfpd flows?

imho these rates are generally marginal and possibly not worthy of reporting in case they dribble off and cant even light a candle later..

i think if you have something to report, report it completely and dont do non disclosures on flow rates. ip rates are important and tell you a lot.

it would be remarkable if a report like that would generate excitement in the share

speculation on prospectivity would have to be neutral to maybe negative?

The flow is unreported because it is irrelevant. They are just stating that gas is flowing because it is a great sign. The depth is not yet complete and this gas is a sign that at the full depth there will at least be something worth getting excited about.

Agentm

4th-November-2009, 05:18 PM

The flow is unreported because it is irrelevant. They are just stating that gas is flowing because it is a great sign. The depth is not yet complete and this gas is a sign that at the full depth there will at least be something worth getting excited about.

drill stem tests are not always a positive thing unless there is something positive demonstrated there to report on.

positive in terms of hydrocarbons present perhaps, but i am not entirely sure how you can read the report as positive with no data

i think neutral to perhaps a touch underwhelmed..

hope they actually find some commercial hydrocarbons.. i hear they have been at it for some time, apparently the oldest victorian oil explorer with nothing but noncommercial finds on its portfolio?

positive is when the well is trying to flow back oil and gas on you with a drill break and you are running heavy mud..

its all very difficult to assess, but i think straight shooting is always a good policy

really hope the well pays off, they need a good break

DVEOUS

9th-November-2009, 11:48 AM

What a cynical bunch!

Some more encouraging news released this morning, and no price movement other than usual 0.010 - 0.011 oscillation.

I can only assume there are many jaded punters out there, who want to see real tangible evidence first, before the SP warrants a serious move?

Holding LKO at 0.011.

WOMBAT 4; FURTHER HYDROCARBON SHOWS - REVISED TOTAL DEPTH

Lakes Oil N.L. announces that its Wombat 4 well, onshore Gippsland
Basin, is at a depth of 2404 m. at 10.30 a.m. this morning and is currently
changing the drill bit before drilling ahead to the new revised total depth of
2500 m, expected to be reached late tomorrow.

Hydrocarbons identified in Latrobe and Strzelecki Group Targets:

Since entering the Strzelecki Group at a depth of 1350 m, drilling has
encountered numerous interesting gas shows, with several shows
containing up to C5 readings. This will be investigated further after electric
logs have been run as there is a possibility that light oil or condensate may
also be present.

Once the new total depth has been reached, electric wireline logs will be
run and sidewall cores will be cut in relevant zones.

After evaluation of both the sidewall cores and electric logs then, if
warranted, several intervals within the Strzelecki Group (primary) tight
reservoir targets will be selected for testing.

Before running casing in the Strzelecki Group, a drill stem test will also be
carried out in the Latrobe Group (secondary) conventional reservoir
target where light oil or condensate appears to have been encountered.

We believe the results so far encountered are extremely encouraging; the
hydrocarbon compositions are significantly different from other Wombat
wells and the Latrobe Group reservoirs appear to be hydrocarbon bearing
at this location.

These results have opened up a range of new possibilities for hydrocarbon
potential in the western portion of the Wombat structure.

Signed
Lakes Oil N.L.
ROBERT J. ANNELLS INGRID CAMPBELL
Chairman Chief Geologist

fureien

9th-November-2009, 12:40 PM

Lol whoops, i meant 1c in my previous post, i think in 2 significant figures so wrote 10c by accident haha.

nunthewiser

9th-November-2009, 12:45 PM

Personally thinks perhaps it would pay to keep both your eyes on it for strange volumes now ...... LKO has a habit of leaking anything of importance to the "boys" before the market , so keep a close eye on any major dumps or buyups from here on in around this testing time ...... Only my opinion, listen, dont listen ..........

Still holding a free ride from .005 after selling out original stake ....... it can do what it pleases i care not.

Putty7

9th-November-2009, 01:15 PM

i care nothing about this company , i view it as a private slush fund for those involved.......the directors always have done well , dilution after dilution , cap raise after cap raise ..........this company has a history of this as long has my habit .........its all about spikes and lows

not deramping , the facts and LONG term chart are in black and white available for all to see

i hold but removed all original capital from .005 purchase

i will buy more on the break if and when it happens

They have their AGM on the 27th of Nov, the directors are looking to push through a truckload of partially paid shares at 1.5c, seems sus how this has dragged out so long, I took your comments on board then Nun and reckon the announcement you are all looking for will end up as close to the AGM as they can possibly manage to do it, bugger me if they haven't got Wombat 2 sorted out by now or have an indication of how it is going to go I would be surprised. Not holding LKO at the moment and not deramping, may look at getting back on these closer to the 27th.

nunthewiser

9th-November-2009, 01:19 PM

Lol, Putty ........ i hold and still think they are nothing but a slush fund.

No deramping intended , just merely pointing out the obvious from over the years of trading them.

Blessem

Putty7

9th-November-2009, 01:21 PM

Lol, Putty ........ i hold and still think they are nothing but a slush fund.

No deramping intended , just merely pointing out the obvious from over the years of trading them.

Blessem

I liked you comment in the EGO thread that slush funds can make money to lol, I think you hit the nail squarely on the head. :) You just have to change your thinking to suit that of the one making the biggest gains

Camel Spotter

12th-November-2009, 04:38 PM

Putty7

12th-November-2009, 10:10 PM

I hope this question is permitted here.

How long do people think the price support for Lakes will be at 1c?

Hopes of easy oil or gas from Wombat 4 appear to have evaporated and the announcement of extremely encouraging results did nothing for the SP.

How realistic is the prospect of commercial quantities of gas from fracturing?

I don't think anything has evaporated, they have found gas and there is enough being released to hold the SP steady for the time being so it seems, I can only assume that for Robert Annells to give comment with a vague announcement he would not be keen to have egg on his face prior to an AGM, when they add volumes to Wombat 4 and possibly news on 2 and 3, then you will know if the SP can hold up or not.

Camel Spotter

12th-November-2009, 10:43 PM

I don't think anything has evaporated, they have found gas and there is enough being released to hold the SP steady for the time being so it seems, I can only assume that for Robert Annells to give comment with a vague announcement he would not be keen to have egg on his face prior to an AGM, when they add volumes to Wombat 4 and possibly news on 2 and 3, then you will know if the SP can hold up or not.

Thanks Putty. I have held LKO for a few years but have a lot to learn. I will have to be more patient!

I am currently holding 4.4 million (at an average of 0.9c).

Putty7

12th-November-2009, 10:47 PM

I have a lot to learn myself and it doesn't make me right, just my opinions lol, reading back through the thread is often a good way to see how others have viewed the share over the years, it gives you some perspective of market sentiment from actual traders and you can match this up with tech analysis or whatever systems you use.

andione1983

16th-November-2009, 03:57 PM

Just trying to get my head around the latest news statements from Lakes...

LAKES OIL N.L.
WOMBAT 4; FURTHER HYDROCARBON SHOWS - oil and
gas present in Strzelecki Group
Further testing continues in Strzelecki and Latrobe
Group reservoirs.
Lakes Oil N.L. announces that its Wombat 4 well, onshore Gippsland Basin, has
reached a total depth of 2500metres and is currently evaluating and testing
selected intervals for both oil and gas.
Over the next few days, the Company will continue to evaluate the drilled
sections with drill stem tests (DSTs) in the Strzelecki and Latrobe Groups based
on encouraging results following electric logging and coring that were completed
over the past week.
Hydrocarbons (gas and liquids) identified in Latrobe and Strzelecki Group
Targets:
As stated last week, since entering the Strzelecki Group at a depth of 1350 m,
drilling has encountered numerous interesting gas shows, with several shows
containing up to C5 readings. Positive identification of liquid hydrocarbons from
electric logs, DST#1 analysis and core data indicates that both oil and
condensate are also present in the Strzelecki Group.
Several intervals within the Strzelecki Group tight reservoir targets have been
selected for DST testing, which may flow gas to surface. However, tight gas does
not always flow without fracturing the reservoir. Tight gas targets will be selected
for future fracture stimulation following advice from our US consultants.
Before running casing in the Strzelecki Group, a DST or several DSTs will also
be carried out in the Latrobe Group conventional reservoir target where light oil
or condensate appears to have been encountered.
We believe the results so far encountered are extremely encouraging; the
hydrocarbon compositions are significantly different from other Wombat wells and
the Latrobe Group reservoirs appear to be hydrocarbon bearing at this location.
These results have opened up a range of new possibilities for hydrocarbon
potential in the western portion of the Wombat structure.

i did some research on the term "Hydrocarbons" in Wiki..

Usage

Hydrocarbons are one of the Earth's most important energy resources. The predominant use of hydrocarbons is as a combustible fuel source. In their solid form, hydrocarbons take the form of asphalt [13]

Mixtures of volatile hydrocarbons are now used in preference to the chlorofluorocarbons as a propellant for aerosol sprays, due to chlorofluorocarbon's impact on the ozone layer.

Methane [1C] and ethane [2C] are gaseous at ambient temperatures and cannot be readily liquified by pressure alone. Propane [3C] is however easily liquified, and exists in 'propane bottles' mostly as a liquid. Butane [4C] is so easily liquified that it provides a safe, volatile fuel for small pocket lighters. Pentane [5C] is a clear liquid at room temperature, commonly used in chemistry and industry as a powerful nearly odorless solvent of waxes and high molecular weight organic compounds, including greases. Hexane [6C] is also a widely used non-polar, non-aromatic solvent, as well as a significant fraction of common gasoline.

The [6C] through [10C] alkanes, alkenes and isomeric cycloalkanes are the top components of gasoline, naptha, jet fuel and specialized industrial solvent mixtures. With the progressive addition of carbon units, the simple non-ring structured hydrocarbons have higher viscosities, lubricating indices, boiling points, solidification temperatures, and deeper color. At the opposite extreme from [1C] methane lie the heavy tars that remain as the lowest fraction in a crude oil refining retort. They are collected and widely utilized as roofing compounds, pavement composition, wood preservatives (the creosote series) and as extremely high viscosity sheer-resisting liquids.

so i am quite curious as to why the SP is dropping, as its still quite good news. IMO they just have to find the pockets and get the hydrocarbons out?

TabJockey

16th-November-2009, 06:48 PM

It sounds like they havnt found enough for it to be profitable yet! They should just keep thier mouths shut untill they have flow figures. Who knows which way it was going to go, the people who got in at 8c today will probably do okay though.

prawn_86

16th-November-2009, 06:50 PM

Why is it that people in this thread can't quote the correct price. It is not 8c it is either .008 or .8c, that is to say eight tenths of a cent.

Please be more accurate in the future.

nunthewiser

17th-November-2009, 03:22 PM

Has taken more freebies OFF the table at LKO . i still hold a minor parcel but not liking the volumes and games of the last 2 days ............ thinks maybe the "good ole boys" may have something we dont............could be wrong and happy to buy a parcel if proven wrong ........ still got a
couple of freebies left that may buy me a lapdance or 2 tho

DVEOUS

18th-November-2009, 10:35 PM

Like I said about LKO last time, investors are obviously running out of patience with Lakes Oil.
This was more than evident on Monday, with the SP falling, on what was generally positive news.

I'd hate to see where the SP lands on bad news!

Holding (and praying) at $ 0.011! :eek:

Putty7

26th-November-2009, 12:30 PM

Bought a very small parcel of LKO today at .009c, might regret it down the track but with the AGM tomorrow maybe there will be some good news, time will tell.

Camel Spotter

27th-November-2009, 07:18 PM

I am interested in what the wise heads here think about the Lakes AGM report today.

I notice the price didn't move up but then again it didn't fall on what has been a poor day.

Jez

28th-November-2009, 08:12 AM

I notice the price didn't move up but then again it didn't fall on what has been a poor day.

Can't comment on AGM, but what happens with the relative price shows us how much a speculative stock it is! When there are huge gains in the general market, LKO will not go up either.

Now you should be able to work it out.

philly

11th-December-2009, 01:28 PM

Atlas79

11th-December-2009, 02:00 PM

Last report to ASX was on 30-11-09 regarding Wombat-4. But I thought they were fraccing Wombat-2 at the same time. There has been no news about this. How long can this take? Does anyone know what if anything is happening? No wonder patience is a virtue you need it with LKO:confused:

I had a look at their website, saw talk of being "adventurous" and the word "a*se" in big letters is one of the first things I saw. This alone made me... shall we say hesitant... to plunge everything I own into this company. Or even $100. But, all the best to you holders!

TabJockey

11th-December-2009, 02:04 PM

Investors assume that if LKO had good news, they would release it, as there are no releases, things must be bleak. Waiting until details are "sure" is a good way to let people in the know get out of the stock at .9 or even .8c. Not sure what it will drop to if its revealed that wombat 4 and 2 are unprofitable black holes of wasted money. God knows whats going on down there.

philly

20th-December-2009, 11:34 PM

Maybe everyone at LKO has gone on holidays and that explains why there hasn't been any news regarding Wombat 2 & 4. Its been 3 weeks since the last ASX announcement and some news before Christmas would be welcome. I mean what happened to the duty to keep the market informed? I can't find anything on www. Does anyone know anything? :banghead:

Jez

21st-December-2009, 09:14 AM

Its been 3 weeks since the last ASX announcement and some news before Christmas would be welcome.

That news a few weeks ago was probably some attempted market agitation to get some extra Christmas spending money for the board members!

Seriously, the whole situation with LKO is laughable!

fishyfallow

18th-January-2010, 04:44 PM

I see the company has made an announcement concerning it's various operations today 18/1.

Can someone with mining knowledge advise if this contains any more
beneficial/or negative information from previous company press releases

Many thanks

Not a current shareholder . Taken profits to date but may reenter market

nunthewiser

16th-February-2010, 09:12 PM

malachii

16th-February-2010, 09:28 PM

Nun

Care to explain your reasoning behind your technical entry - or is it a "trade secret"?

malachii

nunthewiser

16th-February-2010, 09:35 PM

No secrets..

Based on MY interpretation of the weekly chart and MY percieved support and resistance areas coinciding with volumes.

My view and others views may not match up ... and thats cool.

nothing complicated about it ..... i am right or i am wrong and i lose a cupla bucks on stopping out which means im right anyway because i had already decided how much i was going to give away before i entered .

malachii

16th-February-2010, 09:49 PM

Thanks for that Nun - I'm always interested in what other people can see that I cant in the same chart.

malachii

radioham6

17th-February-2010, 10:34 AM

FWIW.

I have re-entered LKO ... This is a pure technical punt on a penny dreadful that has known to be nothing more than a slush fund over the years ....

In my view it is due a break shortly ........... up or down is up to yourselves to decide.

Nice XT earlier .

No sheep stations involved and happy to drop at any given moment.

Position trade

Yes a penny dreadful indeed! Couldn't agree more.

My patience has run out and can get better returns elsewhere....though I have known to be wrong in the past! DYOR

Happy

18th-February-2010, 07:27 PM

Nunthewiser,
I will probably envy you when LKO price rockets all of the sudden, but at the moment I rather see pressure down.

Also last couple of times price’s burst to life was after more than 2 years.
The latest decline did not last a year yet, so looks that there is another year before anything happens.

In a meantime there might be little burst to $0.010 and I would be more than happy to take part in it, but hate too much taking seats in a rocket while still on a way down.

nunthewiser

2nd-March-2010, 02:12 PM

OK .............. .005 hit .... a major assault on volumes into this level and a quick dissapearance of the volume bids here will see me walk away and come back to fight another day on it ......right or wrong but this is MY area of concern and big vols smashing it will knock me out of THIS play

speccy slush fund position punt as previously pointed out ...no sheep stations, no fundamentals , no care factor on what they might or might not do.

adamguerin

2nd-March-2010, 02:24 PM

nunthewiser

2nd-March-2010, 02:34 PM

I have had these shares for almost a year and am considering cutting my loses as well. Do people think that their move to pull out internationally has anything to do with shareholder confidence?

I may not be making sense, but then again, I'm a noob.

Do people think that there is as much to gain on-shore as LKO have stated?

Ads

Please do NOT take anything i do as an indicator of shareholder confidence or a reason to consider your own trade ........

my stuff is a pure play , nothing more .....

All i have done is outline MY paremeters on this trade... they should mean bugga all for YOUR trade/hold

RP_Automotive

2nd-March-2010, 02:44 PM

Lakes have come up with no solid results, no values on gas in place...no intention to go into production...in my opinion that means they're nothing but a slush fund. If any of their wells were really viable they would be doing a production test on them, the closest they have got is a couple of DST's which came up with hardly anything. There are no sustained flow rate figures, just a bunch of "we flowed this rate for x amount of time' which means nothing.

nunthewiser

2nd-March-2010, 02:49 PM

adamguerin

4th-March-2010, 12:10 PM

Please do NOT take anything i do as an indicator of shareholder confidence or a reason to consider your own trade ........

my stuff is a pure play , nothing more .....

All i have done is outline MY paremeters on this trade... they should mean bugga all for YOUR trade/hold

No worries Nun, totally understand. Just wondering if the change management attitude to stay local may have had an effect.

Definitely appreciate and respect all advice / feedback given on the forum.

Adam

nunthewiser

13th-April-2010, 02:40 PM

And LKO still slips by the radar on the rampometer..... slowly creeping ......... intresting vols from time to time.

Gotta love a slush fund :D

DVEOUS

14th-April-2010, 11:46 AM

Is there light at the end of the long dark LKO tunnel? :)

Ohhh for a crystal ball... as I would have topped up yesterday at 0.006.

The BPT farm in has seen a jump to 0.010 today, on larger-than-normal volume.

I have been waiting for the day to bail out of this penny dreadful at what I paid (0.011), but BPT would not throw $50million away on a slush fund, would they?

This IS encouraging.

philly

14th-April-2010, 11:49 AM

Well I guess this has to be a better way of progressing things than raising capital through a SPP. BPT is a proven explorer hopefully things will get a move along and long suffering holders will have something to smile about.:D

BEACH ENERGY TO SPEND UP TO $50M IN LKO’S
PETROLEUM LEASE (PRL2)
Beach Energy has had made an offer to Lakes Oil NL to acquire up to 50 per
cent of its onshore gas lease (PRL2) located near Sale, in the Gippsland Basin,
Victoria.
The board of Lakes Oil has accepted this offer which is now subject to due
diligence and approval of Beach’s board of directors.
The basis of the agreement is on a two stage entry:
Stage one
Beach will fund 100 per cent cost of flow and fracture tests in Wombat 4 and
Boundary Creek 2 wells which have been drilled and cased ready for re-entry
by Lakes Oil.
Beach can earn up to 15 per cent interest in PRL2 by expenditure of $10m in
stage one. Should the expenditure not reach $10m the amount earned by
Beach in PRL2 will be reduced pro-rata to the nearest percentage point.
Stage two
Any monies not spent in stage one can be carried over into stage two. Stage
two enables Beach at this point to increase its interest in PRL2 to a maximum
of 50 per cent by the expenditure of up to a further $40m, plus the balance of
stage one.
Again, in stage two, should expenditure not reach $40m, then the interest
earned will reduce proportionately to a lower level.
(The $50m commitment by Beach is based on matching LKO’s expenditure to
date in PRL2, estimated to be approximately $50m.)
Beach will become the operator of PRL2 subject to a yet to be arranged farm-in agreement.
“I am delighted to welcome Beach Energy into PRL2.” Lakes Oil’s Chairman Mr
Rob Annells said today.
“Beach have demonstrated successful entry in unconventional exploration in
Queensland and more recently in the Cooper Basin.” He said.
“They understand tight reservoirs and they are now one of the leaders in this new technology in Australia.
“Beach’s entry into PRL2 re-enforces Lakes’ confidence in the establishment of
this valuable onshore energy asset and we believe this will open a new chapter in the development of Victoria’s newest petroleum resource.”

pointr

14th-April-2010, 12:55 PM

Don't get too excited just yet, there are a whole lot of long suffering BPT shareholders out there as well. Hope we all make money from these projects but I'm not holding my breath. We hold BPTand are in the red with it.

TabJockey

26th-June-2010, 12:12 AM

Does anyone know what in gods name is happening with this company?

No news from any of thier projects for 6 months is a very bad sign and the market has reacted accordingly. Seems like terrible administration, share price down to half a cent.

Anyone with any news? (or even rumours or conjection?)

rensionurne

2nd-July-2010, 07:57 PM

this is Great Lakes as in the Midwest. Minnesota, Wisconsin, Iowa, Illinois, etc. Its a bit far for us to make it to Buffalo.

Albi

10th-August-2010, 03:09 PM

A very positive announcement but needs green light from victorian goverment. Volume is up...................................

nioka

10th-August-2010, 09:51 PM

I've been in and out of LKO over the years but found they always were close to something but never there and needing capital to continue which diluted the shares almost out the back door. They should have possibilities as the area generally has produced a lot of oil. There would be a ready market for gas as sooner or later the electricity generation in Victoria must change away from the dirtiest coal fired generation around.

The announcement that Beach will fund the next stage has two things going for LKO. Beach have given LKO credit for the 50 odd million spent on the project to date by funding to the tune of $50m for a 50% interest, leaving LKO still with 50%. Secondly I assume that Beach know their business. I have today taken a small spec investment in LKO to the tune of 500,000 @ .7c. Into the bottom drawer for now but I will continue to watch LKO.

nioka

20th-August-2010, 11:19 AM

With the current SP at .007 the market cap is under $31million. Beach have obviously valued the prospects in Victorian gas and oil at $50 million. Assuming there is some value in other assets then the SP at .007 is probably underweight. LKO is worth watching for any positive results from the work that Beach are about to undertake on the project.

A quote from the recent company announcement;
"Under the terms of the farmin agreement, Beach will use its best
endeavours to undertake the Stage one program within 12 months from the
agreement execution."

The program is to frac wells that have been drilled and prepared for fraccing. Indications are that these wells contain gas tightly held that a frac operation could make them commercially attractive.

DVEOUS

20th-August-2010, 11:35 AM

nioka

20th-August-2010, 12:49 PM

You're trying to flog a dead horse Nioka! ;)

I received a colour glossy print version of the latest ann in the mail yesterday.
I should change my settings to electronic delivery, saving the company 60 cents in the postage alone.

That stamp was equivalent to 85 LKO shares!

LKO will need every last cent to keep going!

And BTW, the SP hasn't gone anywhere since the announcement.
This demonstrates the market is not prepared to throw anymore money into this slush fund, until they start seeing tangible results.
BPT could be looking for a write-off anyway.

I agree with everything you say,,,except the dead horse bit. If the horse was dead then Beach would not be interested. They are so there is still some life and where there is life there is hope. Granted that this one is a big spec. Sometimes big rewards come from big specs.

BESBS Player

2nd-December-2010, 03:34 PM

Dead horse? Old dog? Call it what you like, BESBS Player is back playing with the LKO animal again (and desperately trying to avoid getting fleas!)

Seriously, I am now getting set (about 80% in) with LKO.

Why? Here is the simple BESBS rationale:

- Wombat 4 already has had tight gas discovered. While it did not flow freely (hence a failure at the time), specialised fraccing and expertise could get this to flow at commercial rates. In this sense, it is more of an appraisal well than a pure wildcat. This adds attraction to the punters.

- Beach (BPT) have agreed to operate and pump in up to $50m for Wombat-4. BPT management clearly have looked at the project and think that it is worth such a chunk of their bank balance to re-test.

- Last time Wombat-4 was tested, the SP rose from .004c (yes, people thought I was mad buying up at .004 & .005c) until it topped at .017c. I can't see why this stock won't reach the mid-1c range given this past history.

- Yes, capital-raising must be addressed. It is very likely to happen. It also happened last time when LKO issued stock to Pattersons at .005c and they dumped most around .008c. Yes, it held us up for a fortnight but the SP still rose to .017c regardless.

- Beach have just stated in their AGM report that they aim to get this testing program underway early in 2011. This is not really that long to wait. Even if it is the middle of the year, for the patient, $$$ can be made.

- Gippsland has a ready on-shore gas market just down the road - MELBOURNE. With this background, the Herald-Sun and The Age will give the project some press as we approach the target.

- At .007c, the SP seems low enough to have significant SP leverege make an impact.

Anyway, I'm just trying to say clearly what and why I am buying (and at the current market price). As always, DYOR and avoid the fleas...:)

Holding LKO at .007c

nunthewiser

2nd-December-2010, 03:43 PM

:D Glad to hear im not the only flea wrangler in here then .... i have been sneaking a few of late also ..007

Just a punt on yet another poundpup

blessem

BESBS Player

20th-December-2010, 03:29 PM

- Beach have just stated in their AGM report that they aim to get this testing program underway early in 2011. This is not really that long to wait. Even if it is the middle of the year, for the patient, $$$ can be made.

Not sure if anyone noticed but Somerton Energy (SNE) made a release today and it mentioned the following regarding Wombat-2 and Wombat-4:
Update on Wombat ProjectWork associated with Somerton’s farmin to the Wombat tight gas project in the Gippsland Basin commenced on 17 December with start-up of an extended flow and pressure build-up test of the Wombat-2 well. This work will be used to determine whether long term production from the well is economically viable and to assist in the design of the fracture stimulation program of Wombat-4, scheduled for the first quarter of 2011.
Wombat-2, which was drilled in 2004 by Lakes Oil, was fracture stimulated in 2004 and re-stimulated in mid-2009. Throughout 2010 a series of short two hour flow tests of the well were conducted. The PRL 2 Joint Venture now plans to flow test the well for approximately two weeks followed by an extended pressure buildup for about one month.

While I'd like have this confirmed by Beach, at least we have 2 JV partners (SNE & LKO) both confirming Q1 2011 as potential action. :)

Holding LKO @ .007c