LKO - Lakes Blue Energy

[nioka]

With the current SP at .007 the market cap is under $31million. Beach have obviously valued the prospects in Victorian gas and oil at $50 million. Assuming there is some value in other assets then the SP at .007 is probably underweight. LKO is worth watching for any positive results from the work that Beach are about to undertake on the project.

A quote from the recent company announcement;
"Under the terms of the farmin agreement, Beach will use its best
endeavours to undertake the Stage one program within 12 months from the
agreement execution."

The program is to frac wells that have been drilled and prepared for fraccing. Indications are that these wells contain gas tightly held that a frac operation could make them commercially attractive.

 

[DVEOUS]

You're trying to flog a dead horse Nioka!

I received a colour glossy print version of the latest ann in the mail yesterday.
I should change my settings to electronic delivery, saving the company 60 cents in the postage alone.

That stamp was equivalent to 85 LKO shares!

LKO will need every last cent to keep going!

And BTW, the SP hasn't gone anywhere since the announcement.
This demonstrates the market is not prepared to throw anymore money into this slush fund, until they start seeing tangible results.
BPT could be looking for a write-off anyway.

 

[nioka]

You're trying to flog a dead horse Nioka!

I received a colour glossy print version of the latest ann in the mail yesterday.
I should change my settings to electronic delivery, saving the company 60 cents in the postage alone.

That stamp was equivalent to 85 LKO shares!

LKO will need every last cent to keep going!

And BTW, the SP hasn't gone anywhere since the announcement.
This demonstrates the market is not prepared to throw anymore money into this slush fund, until they start seeing tangible results.
BPT could be looking for a write-off anyway.

I agree with everything you say,,,except the dead horse bit. If the horse was dead then Beach would not be interested. They are so there is still some life and where there is life there is hope. Granted that this one is a big spec. Sometimes big rewards come from big specs.

 

[BESBS Player]

Dead horse? Old dog? Call it what you like, BESBS Player is back playing with the LKO animal again (and desperately trying to avoid getting fleas!)

Seriously, I am now getting set (about 80% in) with LKO.

Why? Here is the simple BESBS rationale:

- Wombat 4 already has had tight gas discovered. While it did not flow freely (hence a failure at the time), specialised fraccing and expertise could get this to flow at commercial rates. In this sense, it is more of an appraisal well than a pure wildcat. This adds attraction to the punters.

- Beach (BPT) have agreed to operate and pump in up to $50m for Wombat-4. BPT management clearly have looked at the project and think that it is worth such a chunk of their bank balance to re-test.

- Last time Wombat-4 was tested, the SP rose from .004c (yes, people thought I was mad buying up at .004 & .005c) until it topped at .017c. I can't see why this stock won't reach the mid-1c range given this past history.

- Yes, capital-raising must be addressed. It is very likely to happen. It also happened last time when LKO issued stock to Pattersons at .005c and they dumped most around .008c. Yes, it held us up for a fortnight but the SP still rose to .017c regardless.

- Beach have just stated in their AGM report that they aim to get this testing program underway early in 2011. This is not really that long to wait. Even if it is the middle of the year, for the patient, $$$ can be made.

- Gippsland has a ready on-shore gas market just down the road - MELBOURNE. With this background, the Herald-Sun and The Age will give the project some press as we approach the target.

- At .007c, the SP seems low enough to have significant SP leverege make an impact.


Anyway, I'm just trying to say clearly what and why I am buying (and at the current market price). As always, DYOR and avoid the fleas...

Holding LKO at .007c

 

[nunthewiser]

Glad to hear im not the only flea wrangler in here then .... i have been sneaking a few of late also ..007

Just a punt on yet another poundpup

blessem

 

[BESBS Player]

- Beach have just stated in their AGM report that they aim to get this testing program underway early in 2011. This is not really that long to wait. Even if it is the middle of the year, for the patient, $$$ can be made.

Not sure if anyone noticed but Somerton Energy (SNE) made a release today and it mentioned the following regarding Wombat-2 and Wombat-4:
Update on Wombat ProjectWork associated with Somerton’s farmin to the Wombat tight gas project in the Gippsland Basin commenced on 17 December with start-up of an extended flow and pressure build-up test of the Wombat-2 well. This work will be used to determine whether long term production from the well is economically viable and to assist in the design of the fracture stimulation program of Wombat-4, scheduled for the first quarter of 2011.
Wombat-2, which was drilled in 2004 by Lakes Oil, was fracture stimulated in 2004 and re-stimulated in mid-2009. Throughout 2010 a series of short two hour flow tests of the well were conducted. The PRL 2 Joint Venture now plans to flow test the well for approximately two weeks followed by an extended pressure buildup for about one month.

While I'd like have this confirmed by Beach, at least we have 2 JV partners (SNE & LKO) both confirming Q1 2011 as potential action.

Holding LKO @ .007c

 

[BESBS Player]

Wombat-2 has been done.

Hopefully we will hear news shortly about Wombat-4, the real interest for LKO.


Happy to hold at .007c

 

[philly]

Wombat-2 has been done.

Hopefully we will hear news shortly about Wombat-4, the real interest for LKO.


Happy to hold at .007c

Hi BESBS,its been over a month since LKO reported that Wombat 2 flowed gas at an average of 0.8mmscfd on a 1 inch choke. It also stated that pressure data is currently being interpreted.

There have been no further announcements since. With contributions from both Beach [$33.5m] and Somerton [$16.5m] surely funding isn't an issue. I wish that they would just get onto Wombat 4.

I'm a bit surprised you are holding this one given that the Wombat field has always been plagued by delay. What do you expect the SP to go to prior to Wombat 4 starting up?

I have been in this one a long time [av cost 0.005] waiting for Wombat to take off!!

 

[newanimal]

just picked up some more LKO at .006. At the tail end of first quarter. Hope to hear something soon.

Philly...i believe your question to besbs was already answered in post #244.

(holding somewhere between .006/.007)

 

[BESBS Player]

Liked the announcement from LKO. With Wombat 4 likely in late Q1 2012 (Beach in charge), I'm back in the trough again for the hairy-nose party!


Holding again at .004c ave.

 

[BESBS Player]

Managed to accumulate a few more at .004c.
Given the need for specialised equipment, this might get pushed out to mid-year. Nonetheless, the wait should be worth it at these SP levels.


Holding LKO at .004c

 

[philly]

Managed to accumulate a few more at .004c.
Given the need for specialised equipment, this might get pushed out to mid-year. Nonetheless, the wait should be worth it at these SP levels.

Holding LKO at .004c

This from ASX on 20/12/11
"BPT as operator of PRL2 has signed a service contract with BJ Services Company [Aust] P/L for the fracture stimulation / coiled tubing and perforating services on Boundary Creek-2 and Wombat-4. Work is expected to commence at Boundary Creek-2 in January 2012"

I would anticipate that a start can't be too far away. Happy to have BPT as operator as they seem keen to advance this one.
I hold LKO at .005

 

[BESBS Player]

Hi Philly,

Interesting to see LKO starting to move in anticipation of the Wombat workover.

Recent buying and SP seem to reflect some anticipation of a January commencement (as the ASX 20/12 announcement indicates).

I'm not totally convinced but am happy to be wrong. Unless we get news soon or LKO announce a different project out-of-the-blue, I suspect the SP will drift back to .004c. If we do get a positive announcement in the next week or so confirning the January (or even February would be fine), then the SP should get a sharp jolt in a northward direction.
Either way, I'm set at .004c and have left orders in to top-up at .004c just in case Wombat is delayed.

Watching happily with interest.
All the best with your investment.

Holding LKO at .004c

 

[philly]

BPT/SNE/LKO have engaged BJ Services to conduct the fracturing of Wombat-4 well.
It seems that this is a good choice. BJ Services has earned a reputation for providing reliable fracturing services for virtually every major shale oil and gas operator. Since 1981, our skilled engineers and crews have successfully designed and pumped more than 21,500 shale frac treatments around the world. We know that every shale formation is different and we offer the most advanced fracturing technologies–the right fluids, proppants and equipment–needed to “crack the code” for optimum frac designs and operations.

If SP drops to 0.004 today will top up otherwise Just waiting for a start!!

 

[Jockie Bear]

I think you'll have a wait for .004 someone is buying up big at (as today) up to .007c. Previously over the past three days the stock has sold heaps: does someone know something that we don't? I bought as far back as 2c and again at 1c yep you've guessed it, again at .005. That Bob is one good smart sales guy! Hopefully before I pop off the perch they will put me back in profit.
Good hunting (shares that is), Jockie Bear

 

[philly]

This from ASX on 20/12/11
"BPT as operator of PRL2 has signed a service contract with BJ Services Company [Aust] P/L for the fracture stimulation / coiled tubing and perforating services on Boundary Creek-2 and Wombat-4. Work is expected to commence at Boundary Creek-2 in January 2012"

I would anticipate that a start can't be too far away. Happy to have BPT as operator as they seem keen to advance this one.
I hold LKO at .005

The information from both the BPT & LKO Quarterly Reports is that fraccing in the PRL 2 will commence later this quarter.
Also noted that a few more wells are planned for this year and also intention to re-visit USA. Good to see the action being spread around. Expect SP to stay at around 0.005 - 0.006 in the short term until we get positive news.
I hold LKO @0.005

 

[BESBS Player]

The information from both the BPT & LKO Quarterly Reports is that fraccing in the PRL 2 will commence later this quarter.
Also noted that a few more wells are planned for this year and also intention to re-visit USA. Good to see the action being spread around. Expect SP to stay at around 0.005 - 0.006 in the short term until we get positive news.
I hold LKO @0.005

Hopefully we hear news soon. The punters are all revving the motor at the SP starting line

Holding LKO at .004c

 

[BESBS Player]

Not long to go now.

From what I hear at the LKO office, the prelim work foe Boundary/Wombat re-fracc is done. LKO are now waiting for the Beach operator/workforce to settle in and commence. Probably a week to go. Not long now!

An added bonus is that Armour are planning to drill the Morey site in the next 6-8 weeks.

The next 3 months should be a cracker for LKO, especially when one considers the leverege available for profit with a SP at .006c

Holding LKO at .004c

 

[newanimal]

nice to see the director just purchased 6 mil shares at market. Didnt own any prior. A good sign. Maybe news soon

 

[BESBS Player]

Managed to accumulate a few more at .004c.
Given the need for specialised equipment, this might get pushed out to mid-year. Nonetheless, the wait should be worth it at these SP levels.

Interesting to read the Chairman's letter and see lots of gloss and promise but no set dates in light of my posted back in December. Looks like I might have been right all along!

After contacting the LKO office (Feb) a while back and being told that the BPT team would arrive and start soon (ie. early March), I hope I am forgiven if I don't take other offerings of LKO advice at face value.

That said, I have fished around a little on the proposed timings.

For the Otway drilling, the rig is set to go and LKO are expecting an April drill (weather permitting). As it turns out, this will give shareholders a free hit at this well, knowing that the Wombat project is still to come.
According to BPT (I disregard LKO comments on the Wombat drill), they claim Q2. Nonetheless, if we relied upon BPT comments on this one, Christmas would be delayed until the following August!
I have been burrowing around the Wombat hole, got my nose dirty and managed to chat with some straight-shooters. I suspect we are looking slightly later in Q3.
Either way, an interesting (and likely profitable time ahead for traders).

Holding LKO at .004c