Permits
It was Lakes Oil NL drilling of Trifon-2 well, which encountered hot saline water at approximately 2 km, where the idea for Greenearth Energy was first born. This event encouraged both Lakes Oil NL and VictoriaPetroleum NL to form the company.
ONSHORE GIPPSLAND BASIN
PRL 2 – (formerly PEP 157) – Onshore, Victoria
(Lakes Oil Group Operator: 100% interest of overall permit. Roma petroleum NL has a 5% over-riding royalty) Trifon Block (Lakes Oil Group, Operator; 50% interest; Jarden Corporation Australia Pty Ltd 50% interest).
Interpretation of the 3D seismic data acquired over the Wombat field continued during this quarter for several weeks and was completed at the end of June. Evaluation of the new data will enable us to locate Wombat 4 in its optimum position. Drilling of this well is planned for the next six months, depending on rig availability.
Lakes Oil commissioned a third party independent expert to evaluate our Wombat Fields resources following the 3D survey. We expect this work to take about 10 weeks.
PRL 3 – (formerly PEP155 Western Block) – Onshore, Victoria
(Lakes Oil Group, Operator: 100% interest)
The Company has decided to drill a shallow well near the oil shaft at Lakes Entrance in order to sample and evaluate fresh oil and rock samples from the reservoir sequence in the Lakes Entrance oil field. Discussions are continuing with stakeholders in the Lakes Entrance area to discuss right of access to historic oil wells and old shafts.
PEP 158 –Onshore, Victoria
(Lakes Oil Group, Operator: 100% interest)
The Company submitted an application for a 15 year Retention Lease to the Department of Primary Industries over much of PEP 158. The proposed work program for the fist five years will be aimed at achieving full assessment and evaluation of the Woodside, Wonga Binda, Stringy Bark and Alberton tight gas areas, together with other areas and aims to:
- bring one or more of these areas to commerciality and;
- assess additional potential Strzelecki tight gas targets in the lease that have not been drilled or fully evaluated yet;
- assess the potential of the Tertiary black sands.
Following recent evaluation of our Alberton-1 well in PEP 158, further discussions were held with the Department of Primary Industries in relation to the Retention Lease Application.
PEP 166 – Onshore, Victoria
(Lakes Oil Group: 26% interest; Operator: Bass Strait Oil Company Ltd)
Renewal of PEP 166 has been granted in the last few weeks. Term 2 of the permit has been granted for 5 years and required a 50% relinquishment of the original area. We are now commencing the first year's work program for the new permit area.
OFFSHORE GIPPSLAND BASIN
VIC/P47 (GILBERT BLOCK ) – Offshore, Victoria
(Lakes Oil Group: 26% interest; Operator: Bass Strait Oil Company Ltd)
No further exploration was conducted during this period.
ONSHORE OTWAY BASIN, VICTORIA
PEP 163 – Onshore, Victoria
(Lakes Oil Group: 100% interest; Operator: Lakes Oil N.L.)
Approval of PEP 163 Term 2 was granted recently for a 5 year period. The Company is reviewing the first year work program.
PEP 164 – Onshore, Victoria
(Lakes Oil Group, Operator: 100% interest)
Continued planning for the proposed drilling of a selected drill site in the Gellibrand area was undertaken. This is planned for the latter half of 2008, pending rig availability.
PEP 169 – Onshore, Victoria
(Lakes Oil Group, Operator: 100% interest)
The Company has been re-evaluating the existing wells and seismic as part of the Year One work program. The primary objective in this block is to explore the Cretaceous rocks and to extend out tight gas concepts developed in the Gippsland Basin and apply these to exploration of the tight gas potential in the lower Cretaceous Otway Group. In addition, our secondary objective is to explore for conventional structural plays in late Cretaceous reserviors in the PEP 169 that have been seismically defined.
The Company believes that PEP 169 contains significant potential for hydrocarbons, located as it is within and around the flanks of the Port Campbell Embayment and on the northern limit of the Shipwreck Trough, with successful testing in particular of the Late Cretaceous Waarre Formation.
With production licences over the North Paaratte, Wallaby Creek, Grumby, Iona, Mylor, Penryn, Tregony, Langley and Seamer Fields extracted from the original licence, there remains potential for production from as yet untested structural and stratigraphic closures.
EROMANGA BASIN - QUEENSLAND
ATP 560P – McIVOR BLOCK - Onshore, Queensland
(Lakes Oil Group: 50% interest; Operator: Victoria Petroleum N.L.)
There was no activity undertaken on this permit during the period. We are currently considering the future of this block.
ATP 560P – UELEVEN BLOCK - Onshore, Queensland
(Lakes Oil Group: 25% interest; Operator: Icon Oil N.L.)
There was no activity undertaken on this permit during the period. We are currently considering the future of this block.
NEW ZEALAND - North Island
PEP 38350 – Onshore/Offshore, New Zealand
(Lakes Oil Group: 100% interest; Operator.)
The recent 3000 line km regional aeromagnetic survey is still in the process of being interpreted. This survey covered about two thirds of the PEP 38350 block. Early interpretation of the results indicates that several major structural features, such as regional lineaments and faults, can be identified from the aeromagnetics and that these conform to the main NE-SW structural grain of the East Coast Basin.
PEDIRKA BASIN – NORTHERN TERRITORY
EL 142 – Onshore – Northern Territory
(Lakes Oil Group: 100% interest; Operator.)
The EP 142 acreage contains a similar stratigraphic section to that observed in the Cooper and Eromanga Basins of South Australia and Queensland. The main reservoir and source rock units are contained in Permian, Jurassic and Triassic age successions. Oil occurences and shows have been recorded over the last two decades in several wells in and adjacent to this permit and hence add to the interest and potential of this acreage.
Review of the geological and geophysical studies is continuing as part of the Year One work program with the objective of assessing the hydrocarbon potential and mapping of possible leads from the existing seismic and well coverage.
ONSHORE USA – SAN JOAQUIN BASIN CALIFORNIA
EAGLE PROSPECT - Onshore, California, U.S.A.
(Lakes Oil Group: 15% working interest; Operator: Victoria Petroleum N.L.)
Efforts are currently being made to farm out this block, which may result in Lakes Oil having a reduced interest.