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?