LKO - Lakes Blue Energy

[JackC]

lol thanks but becareful, after all this is a spec oiler with no revenue apart from constant SPP's and placements

That being said Wombat imo looks to be a massive sleeper asset

Sure thing. This has been on my watchlist for well over a year now & aware that the company hasn't made money before. Have always had a good chunk of my portfolio in oil as have worked in the oil/gas industry for the last 15yrs. Not saying i'm an expert by any stretch but tend to stick with what I know rather than what I don't. Obviously this one is a major spec but with the Chairman recently buying up a decent chunk of this stock & the gas recovery technology that seems to be making some waves within the industry I'm happy to take a punt on this one.

 

[JackC]

Just been doing a bit more research & in the last few months directors between them have purchased 65m shares for a total cost of $255k.
Can't imagine they're risking that sort of money without knowing something is about to happen.
Will wait & see I guess.

 

[BESBS Player]

Hi Jack.

$255k helped re-assure me that LKO was worth a punt.
TSV's success with the new fraccing technology helps as well.

 

[Eloise]

Is it just me or did someone just buy 10m worth?

Holding at .005 mmm, so tempting to add more to the parcel...

 

[BESBS Player]

Hi E.

Yes, a couple of large sales went through.

If one is happy with the story (outlined in ealier posts), a 10m purchase @
.005c offers great leverage to potentially significant profits later this year.

 

[RP_Automotive]

Seems to have found *some* support at .005 with alot of people begging @ .004...Its sitting at .006 now but .005 seems to be a new support level.

 

[BESBS Player]

Hi RP.

Agreed. .005c seems to have solid support but .006c is growing. We are now starting to get significant queues for .005c at times. (This morning it was around 15m queued for .005c).

This will just quietly move along for a little while...

Holding LKO

 

[YOUNG_TRADER]

As the company said earlier this month the WA gas exploration well WARROW will hold the key short term for the companies future and if it is to ever hope to realise the estimated $50m- $88m implied value

Company announcement, been issued a
speeding ticket:

a. There is an increasing awareness within the market and the petroleum industry about new successful technologies being used in the recovery of gas from “unconventional” reservoirs. Lakes Oil NL’s tight gas activities in Gippsland are prime examples of such unconventional reservoirs in Australia.
The increased awareness is illustrated by the large numbers being paid for Coal Seal Methane reserves (unconventional gas) in Queensland, together with corporate activity within the sector. Also in Western Australia a “tight gas” exploration well, “Warro” is currently being drilled using similar technology used by Lakes Oil NL in Gippsland, which again is an example of
increasing interest in unconventional gas.
b. With the above in mind, on 29 October 2008, Lakes Oil NL released an announcement indicating a 2C reserve of 293 Bscf, which was compiled by Gaffney Cline & Associates. An independent asset evaluation of this report was conducted by Palliser Strategic Management and Langusch & Associates. Based on a range of in situ risk-adjusted values calculated from the project modelling and implied trade sale values from recent CSM activity their P50 value range for the Wombat Field 2C resource case is between $A50million-$A88million.Internet Site: www.lakesoil.com.au
Email Address: lakes@lakesoil.com.au
c. Lakes Oil NL is currently capitalised in the market at approximately $16million and currently
has approximately $6million in cash and liquid assets.

 

[YOUNG_TRADER]

Interesting Qtrly read for LKO




Additional Independent Assessments in PRL 2
In addition to the independent assessment of the
Wombat Field in PRL 2 previously conducted by
Gaffney Cline and Associates, Lakes Oil NL has
commissioned the consulting group to provide us
with an independent evaluation of the Trifon and
Gangell fields in PRL 2, which will include results
from the proposed testing at North Seaspray-3 in
the next quarter. Results of this evaluation are
expected to be completed in the next two months.
The evaluations will provide with us a much better
perspective of the undeveloped tight gas resource
contained in the Strzelecki Group in the southern
part of PRL 2.

 

[YOUNG_TRADER]

Its no secret that LKO's Wombat field and TSV's Warrow are comparable the company has itself made the comparison (see ASX Price Query Response dated 3/4/09)

Also in Western Australia a “tight gas” exploration well, “Warro” is currently being drilled using similar technology used by Lakes Oil NL in Gippsland, which again is an example of increasing interest in unconventional gas.

Interesting TSV has gone into a trading halt pending flow rates at their Tight Gas Structure Warrow, if they are positive the stock will go to the moon, not holding any but am holding LKO whose tight gas structure know as Wombat is worth $50m - $88m = 1.2c - 2.1c (see numerous anns including ASX Price Query Response dated 3/4/09 and letter to shareholders dated 29/10/08)

Another point of interest is that TSVs current mkt cap is 900m@2.5c= $22.5m and it has a 10% interest in Warrow

Lakes mkt cap is 4,265m@0.5c= $21m yet it has 100%

Theoretically Lakes could 70-80% of the well to a major and retain a 20-30% free carried interest

So keep an eye

 

[BESBS Player]

YT,

good comparison between LKO and TSV. The main benefit to LKO will be the assurance that the technology does work, as TSV will demonstrate. Once that is confirmed, it adds to the security of the Wombat project.

Happily holding LKO

 

[YOUNG_TRADER]

With D-day around the corner for TSV at its Warrow well I'm surprised LKO hasn't attracted more interest yet

Will definately be one to watch if TSV starts going bonkers as it will run off its coat tails

Also be interesting to see what values that consulting group give to the Trifon and Gangell fields

Lakes Oil NL has commissioned the consulting group to provide us with an independent evaluation of the Trifon and Gangell fields in PRL 2,

 

[YOUNG_TRADER]

Based on TSV and LKO's ann today I think LKO is really undervalued

wow 70M just went through looks like someone else agrees

Its no secret that LKO's Wombat field and TSV's Warrow are comparable the company has itself made the comparison (see ASX Price Query Response dated 3/4/09)

Also in Western Australia a “tight gas” exploration well, “Warro” is currently being drilled using similar technology used by Lakes Oil NL in Gippsland, which again is an example of increasing interest in unconventional gas.

Interesting TSV has gone into a trading halt pending flow rates at their Tight Gas Structure Warrow, if they are positive the stock will go to the moon, not holding any but am holding LKO whose tight gas structure know as Wombat is worth $50m - $88m = 1.2c - 2.1c (see numerous anns including ASX Price Query Response dated 3/4/09 and letter to shareholders dated 29/10/08)

Another point of interest is that TSVs current mkt cap is 900m@2.5c= $22.5m and it has a 10% interest in Warrow

Lakes mkt cap is 4,265m@0.5c= $21m yet it has 100%

Theoretically Lakes could 70-80% of the well to a major and retain a 20-30% free carried interest

So keep an eye

 

[YOUNG_TRADER]

Hey Nun, I dont know about ramps but here are the facts when comparing to the much more advanced TSV



TSV 900M@ 3.3c = $30m and 10% interest

LKO 4265M@0.006 = $25m and 100% interest

Warrow required expensive exploration wells, Wombat has 3 existing exploration wells which Lakes plans to flow test/frac and has deffered the much more expensive Exploration drilling Wombat 4

Proposed Operations
The following operations are scheduled for our wells during the next quarter, once all required approvals have been granted:
• North Seaspray 3: re-entry using coiled tubing unit, nitrogen lift clean-out and flow test the gas zone at 1,110m depth over an extended period.
• Wombat 2: re-entry, re-fracture and flow test the gas zone at 1,470m depth with a much larger fracture geometry.
• Wombat 3: re-entry, nitrogen lift clean-out and flow test the gas zone at 1,430m depth and the oil zone at 2,106m depth, which were fracture stimulated in 2005.

Furthermore LKO had Wombat independently valued at $50m - $88m = 1.2c - 2.1c (see numerous anns including ASX Price Query Response dated 3/4/09 and letter to shareholders dated 29/10/08)

and is in the process of getting the Trifon and Gangell fields valued

Lakes Oil NL has now commissioned the consulting group to provide us with an independent evaluation of the Trifon and Gangell fields in PRL 2, which will include results from the proposed testing at North Seaspray 3. Results of this evaluation are expected to be completed in the next two months. The evaluations will provide us with a much better perspective of the undeveloped tight gas resource contained in the Strzelecki Group in the southern part of PRL 2.

 

[nunthewiser]

i hold as previously pointed out...only kidding.re ramps.. intresting vols , intresting ann , some nice chunks bought today...thankyou for the updates

 

[UPKA]

yep, as soon as a buyer took that chunk out, sellers started to flood in. its not a very liquid stock, we'll see the SP capped at around this level until we get something firmer...

 

[BESBS Player]

Smiling today! TSV looking good. The technology appears to be helping to increase previous results and to date, no breakdowns! Given the similarities to LKO and the Wombat appraisals, no wonder punters are joining LKO today.

Remember YoungTrader, these valuations reflect the shallow targets. If successful, deeper zones can be tested and these add extra $$$ potential.

Patience will still be required but presuming flow rates from TSV meet expectations, LKO should get another kick along in a few weeks.

Holding LKO

 

[UPKA]

With regards to that $300k buy order yesterday, which was traded after a non-price sensitive announcement. could it be the directors buying themselves or with their related entities (disclosed or not disclosed), just to cover their A*rse with ASX by repeating their own statement extract from the quarterly report?

 

[YOUNG_TRADER]

Who knows UPKA, but if it was they have 3days to let us know

I think its savvy management to keep the mkt fully informed, much better than no news

Happy to hold and wait

 

[Dangerous]

... i was told to buy this one at .004/5 a few weeks ago, but did not due to a not so glamourous history....

This stock is for traders only, but there isn't the liquidity there for trading...

Further to thisover 4B shares on issue! YGTBFJ