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LKO - Lakes Blue Energy

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Thanks for your time and insite BESBS. I really appreciate it. Its nice to be able to get some information from someone who knows something about the product.. Ill keep an eye on this one.. Best of luck with your investments too.
 
Yesterday's announcement shows that LKO are continuing to work behind the scenes on the potential merger. Although I'm sure we will see more .004c to come, it does appear that the supply at this price is slowly diminishing.

Holding and still accumulating LKO
 
If I'm not mistaken Paul Keating was involved in this stock many years ago.

He is an ex pm of Australia.

Is he still on the register?

gg
 
No idea, GG.

However I did see today that Robert Annells has transferred, as Paul Keating would say, " a beautiful set of numbers" (some 41m shares) from a personal account to an indirect account.

Why bother unless,
a. tax benefit later on? (both super accounts, so not sure if it matters??)
b. can sell some stock if it rises with upcoming action next year and not be seen in his own name?

No guarantees but suspect that this one will move in 2009.

Holding LKO.
DYOR
 
From Dec.18:

From what I hear, LKO are planning to re-test the old Wombat drillings (appraisal) and then drill a new Wombat exploration well - all hopefully H1 next year. Now management know they are looking at tight gas, better equipment and relevant expertise is hoping to get earlier gas discovery to commercial level. The new exploration well is a bonus.

Noticed that Rob Annells has transferred 41m shares from a direct account into an indirect account. In fairness, might be for tax reasons...not sure.
Mind you, if you want to sell some stock when the SP rises, then it looks much more palatable for shareholders if the sale is from an indirect account where you can always claim that you did not have total control over the decision. Maybe I'm being suspicious but starting to think that my quote above might be close to the mark. If this is correct (and we will probably never know), management must have some hopes for LKO's SP to move northward in 2009 at some stage.

Just wondering...

Holding LKO
 
News on the merger should be the trigger to get things moving for LKO. I'm expecting a drilling program announcement shortly after the merger is confirmed.

Holding LKO
 
Just reading through relevant articles and found this one for LKO.

Wombat gas field could yield $118mBarry FitzGerald
October 30, 2008

MELBOURNE'S Lakes Oil has given shareholders the best estimate yet of what the group's unconventional or "tight" Wombat gas field in the onshore Gippsland Basin might be worth.

Working off two independent assessments, Wombat's value was put at $50 million to $88 million on a best estimate of Wombat's contingent resource base, or $81 million to $118 million on a high estimate basis.

Lakes made the point that at its recent share price value of 0.4 ¢ it had a market valuation of $16.8 million or $9.8 million after deducting cash on hand of $7 million.

Key to the Wombat valuation was the finding by Gaffney, Cline & Associates that its estimated ultimate gas recovery potential ranged from 211 billion cubic feet of gas to 394 billion cubic feet of gas.

The work highlighted that the gas resource values were highly sensitive to east-coast gas market price assumptions. The valuation was based on gas price estimates of $3.75 a gigajoule in 2008, rising to $5.23 to $8.23 a gigajoule by 2016.

While gas fields in the offshore Gippsland Basin are free-flowing, Wombat's reservoir sandstones are tight, meaning that they need to be artificially stimulated to achieve commercial flow rates. Stimulation by fracturing the sandstones or other methods is common in the US, including the big Pinedale project in Wyoming.

Lakes said that the reports had confirmed its "view that the Wombat gas field is a highly prospective undeveloped unconventional gas resource". It is now preparing to drill the Wombat 4 well in a position it believes will better test the structure's full potential.

With the potential merger thrown in, LKO should be in for a big 2009.

Holding LKO
 
Holy mackeral, .001 cents = 25% gain.Buy early and sell before spud - you won`t need many parcel passers to make a tidy profit here.

As for a serious oil and gas company they could do worse than be simply a name and number on the ASX.Worse off credability & price wise than years ago when some other fandango drill site was on the cards.Should burn up the cash in hand on wombats, administration, director fees and generally keeping the dream alive.

Am i not seeing the real picture here?
 
Iam actually amazed they are still listed to be honest .....but hey one has to admit they have been around a long time doing the same thing....... how many shares are on issue these days , must be in the zillions with all the cap raisings/spp,s ,new issues its done over the years
 
Over 4.2 billion shares on issue and about 90 million nov. 2009 options. I don`t think multimedia (MUL) ever had that many on churn.
 
Hi Numthewiser.

Some good points made above but don't forget the key here is the context of the strategy to make money.


True, it is surprising that LKO have survived at one level. Yet Annells is a smart operator when dealing with raising money. Generally speaking the drill targets are lower cost on-shore targets, reports/SPP documents are hard copy and sent to holders so they see directly the project in question. The shares on offer are huge but many are bought by the same shareholders. None of this guarantees drilling success...LKO are evidence of that! However it does help explain why LKO has a loyal group of shareholders who keep pitching in for drilling.

As a BESBS player, this is a key factor is picking stocks that have the potential to bring big returns. A share consolidation would impact negatively on the value of share holdings but this won't happen unless Wombat is successful...again, not my problem as I would be gone by then. Ultimately LKO have money at present, shareholders have the elusive dream of finally finding gas or oil, and the SP is close to the annual low range so leverage is higher.

Just my thoughts and no guarantees.

Cheers,
BESBS
 
BESBS Player said:
Hi Numthewiser.

Some good points made above but don't forget the key here is the context of the strategy to make money.




BESBS
Click to expand...

yeah m8 i always have LKO on my watchlist as with EGO .. have made money in the past BUT the trick with both these naughty lil tinpots is watch the vols .BOTH prone to looking after the "boys " first and often a nice volume spike either way before anything due

not knocking your choice of trade , was genuinely surprised they have lasted this long
 
G'day Wysiwyg.

Wysiwyg said:
Over 4.2 billion shares on issue and about 90 million nov. 2009 options. I don`t think multimedia (MUL) ever had that many on churn.
Click to expand...

Shares on offer are like grains of sand on the beach...true. Yet as a BESBS play, this is not necessarily a bad thing. Provided people also buy in huge quantities, you can make money. In this case, the leverage is the key. High leverage to large potential profit usually lures the punters. That's what I am banking on. I don't guarantee LKO will make great returns but I genuinely think that it will (hence I am buying shares in it). I also make mistakes and get it wrong. This financial year I have made some mistakes (as can be seen from some threads here. I managed profits (ave. 10-50%) on CTP: Blamore & 93001, EGO: Star Finch, MOG: Bazzard, ITC (just on a run in Sept.) and very recently GDN (Paradox 1 workover). TSV is also looking good - up 25% to date. To balance this, I only broke even on the last CTP play and EGO (Lake MacLeod) was a loss.

Based on my thoughts (see post 14/11) and comments here, I don't see the shares on issue being a major problem for this BESBS play. Remember though, I might well be wrong and time will show if this is true.

All the best with your investments,
BESBS
 
 
Now that the merger seems to have been delayed, LKO can get on and announce a drilling program. Watching carefully for news...

Holding LKO
 
Good to see a Director buying shares... While he has not put the house on it, it is better than seeing them sell stock!

Holding LKO
 
Volumes have been up at times during the last week. Rob Annells has just bought $76k of LKO. Suspect that Q2 might have some news

Holding LKO
 
What's going on? I can't find any new news on LKO.
Trades are over 100 so far.
60 million plus shares have already been traded.
Up 25% (0.005)
Any ideas what's going on???
Cheers.
 
I have been watching it for a few weeks now for the following reasons

1. Runs in ADY CVI INL CFR showing that the penny dogs will run on news

2. LKO director buying 19M recently on mkt at 0.004



The following LKO ann on its Wombat Gas deposit
http://imagesignal.comsec.com.au/asx...f/00896456.pdf

in particular
These figures have been released to shareholders to enable them to better understand the valuation of their company which is currently selling on the ASX at 0.4 cents giving a market valuation of $A16.8m with $A7m of cash in the bank.

Lakes Oil N.L. also commissioned Palliser Strategic Management and Langusch & Associates to provide an independent asset evaluation in PRL 2 base on implied values associated with preliminary commercialization plans for this underdeveloped unconventional gas resource. Based on a range of in situ risk-adjusted values calculated from the project modeling and implied trade sale values from recent CSM activity, their P50 value range for the Wombat Field 2C resource case is between $A50m-$A88m.
$50m - $80m = 1.2c - 1.9c


Just throwing some thoughts out there, volume is ridiculous smells of insiders
 
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