Projects

Corporate Developments

Lakes Oil announced at the end of July that it had signed a non-binding terms sheet with Cape Energy SA in respect of a potential business combination of the two companies.

The intention of the two comapanies is to combine the Golden Beach asset with Lakes Oil's tight gas plays. Shareholders will be kept informed of the progress of negotiations.

Lakes Oil has engaged an independent consultant to conduct an assessment of possible contingent reserves of the Wombat field.

This evaluation is currently being undertaken and includes 3D seismic data. This report will provide an initial assessment which can be finalised once Wombat 4 is drilled.

On Going Projects

In the Otway Basin, PEP 164, we are proposing to drill Gellibrand-1. This is to target lower cretaceous tight gas and to fulfill our permit obligations. The proposed well is scheduled for the next quarter but depends on the availability of the rig.

Lakes would also like to advise that it is continuing to have discussions with a number of parties who are interested in farming into the Wombat project.

Tour Of Gippsland

Lakes Oil was recently the major sponsor of the fourth annual Tour of Gippsland. The event showcased some of the best young talent in Australia cycling. The spectacular course, was mostly in the East Gippsland Shire and was held over five days.

 Below: Lakes Oil team riders in front of a 40-year-old drill rig at Seaspray