LKO - Lakes Blue Energy

[BESBS Player]

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]

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 4 ½” 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]

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]

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]

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]

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]

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]

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]

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%

 

[Dreadweave]

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

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]

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]

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.

 

[Putty7]

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]

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]

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]

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]

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]

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

 

[nunthewiser]

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]

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.