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.
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 newestpetroleum resource.”