LKO - Lakes Blue Energy

[sismek70]

Australia's first tight gas drilling operation is looking very promising in WA. With TSV a 1/4 way through flow testing schedule for Warro3, initially flowing gas at 2.1mmcf, steadily increasing, and also has flowed to the surface without nitrogen lift, is making the proposed tight gas operations for LKO on the Wombat wells more attractive. Once recovery of frac fluids ceases which inhibits the gas flow the rate will be significantly higher. Latent Petroleum will have the stabilised flow rate results just in time for the Tight Gas Alternative conference in June. Where Rob Annells plans to discuss the Operational Case Study for Wombat tight gas field, should give some more interest into LKO too.

The tight gas era arrives

 

[YOUNG_TRADER]

Tight Gas Alternative conference in June. Where Rob Annells plans to discuss the Operational Case Study for Wombat tight gas field, should give some more interest into LKO too.

The tight gas era arrives

Tight Gas alternative conference, I had no idea, very interesting how this once speculative energy sector is gathering momentum as is the UCG sector, all thanks no doubt to the rise and rise of the CSG sector

LKO is in a very interesting period with no less than 3 price catalysts on the horizon

1. Flow/Fracure testing at Wombat

2. Release of the study on the other Trifon and Gangell fields in PRL 2, which hopefully will also have a valuation ot it as did the Wombat study

3. This tight gas conference should really highlight the fact that TSV is not the only play but LKO too

Dangerous shares on issue is only one side of the equation, you need price to get mkt cap, LKO's isn't that large, bout the same as EGO which has about 3Billion shares on issue and nothing but heaps and heaps of prospective drill targets in W.A. something to consider

 

[Eloise]

Does anyone else think the vol today is a bit unusual?
89mil mostly at .005 - there has been a queue for that price for a little while now and all of a sudden wham everyones selling...
Strange considering the results of TSV dont you think?
people just getting impatient waiting on results?

 

[YOUNG_TRADER]

Hi Eloise

Hmmmmm huge volumes going through on LKO but it appears to be sellers or rather fed up holders getting out, very surprising when you consider the milestone achieved by TSV and its JV partners over at Warrow in WA,

also valuations are being done on 2 further fields Trifon and Gangell, I wonder what they will come in at? Considering Wombat was valued at $50m-$88m it will be interesting to see

Finally considering Lakes are about to commence Fraccing/testing at Wombat (the same activity that has driven TSV) I see alot on the horizon for it

 

[Jez]

Hi Eloise

Hmmmmm huge volumes going through on LKO but it appears to be sellers or rather fed up holders getting out,

Looks like someone wanted their $400,000 back. Most of the sales went through at just after 3 PM.

I wouldn't be surprised if the last couple of big days has been some type of manipulation, but I could be wrong?

Will we now be seeing 0.003 again?

 

[Jez]

All the trades that are at the same time are from the same buyer;

TIME_______PRICE_ VOL ___ VALUE
04:10:14 PM 0.005 577,911 2,889.56
04:10:14 PM 0.005 22,089 110.45
03:57:21 PM 0.005 152,911 764.56
03:56:46 PM 0.005 447,089 2,235.45
03:52:00 PM 0.005 52,911 264.56
03:52:00 PM 0.005 400,000 2,000.00
03:52:00 PM 0.005 200,000 1,000.00 XT
03:52:00 PM 0.005 200,000 1,000.00
03:52:00 PM 0.005 1,147,089 5,735.45
03:50:22 PM 0.005 2,000,000 10,000.00
03:49:19 PM 0.005 252,911 1,264.56
03:49:19 PM 0.005 247,089 1,235.45 XT
03:47:17 PM 0.005 1,752,911 8,764.56
03:47:17 PM 0.005 12,997,089 64,985.45
03:44:00 PM 0.005 200,000 1,000.00 XT
03:22:57 PM 0.005 1,433,812 7,169.06
03:22:57 PM 0.005 1,000,000 5,000.00
03:22:57 PM 0.005 869,099 4,345.50
03:22:57 PM 0.005 1,500,000 7,500.00 XT
03:20:33 PM 0.005 287,160 1,435.80
03:19:35 PM 0.005 1,000,000 5,000.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 350,000 1,750.00
03:19:35 PM 0.005 360,000 1,800.00
03:19:35 PM 0.005 2,000,000 10,000.00
03:19:35 PM 0.005 4,000,000 20,000.00
03:19:35 PM 0.005 185,000 925.00
03:19:35 PM 0.005 50,000 250.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 680,000 3,400.00
03:19:35 PM 0.005 2,000,000 10,000.00
03:19:35 PM 0.005 1,000,000 5,000.00
03:19:35 PM 0.005 150,000 750.00
03:19:35 PM 0.005 150,000 750.00
03:19:35 PM 0.005 600,000 3,000.00
03:19:35 PM 0.005 800,000 4,000.00
03:19:35 PM 0.005 900,000 4,500.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 200,000 1,000.00
03:19:35 PM 0.005 200,000 1,000.00
03:19:35 PM 0.005 200,000 1,000.00
03:19:35 PM 0.005 2,000,000 10,000.00
03:19:35 PM 0.005 137,050 685.25
03:19:35 PM 0.005 1,000,000 5,000.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 800,000 4,000.00
03:19:35 PM 0.005 750,000 3,750.00
03:19:35 PM 0.005 100,000 500.00
03:19:35 PM 0.005 600,000 3,000.00
03:19:35 PM 0.005 200,000 1,000.00
03:19:35 PM 0.005 500,000 2,500.00
03:19:35 PM 0.005 31,691 158.46
03:19:25 PM 0.005 168,309 841.55
03:19:25 PM 0.005 190,000 950.00
03:19:25 PM 0.005 241,691 1,208.46
03:19:23 PM 0.005 500,000 2,500.00
03:19:22 PM 0.005 258,309 1,291.55
03:19:22 PM 0.005 175,000 875.00
03:19:22 PM 0.005 466,691 2,333.46
03:19:21 PM 0.005 533,309 2,666.55
03:19:21 PM 0.005 366,691 1,833.46
03:19:06 PM 0.005 133,309 666.55
03:19:06 PM 0.005 175,000 875.00
03:19:06 PM 0.005 200,000 1,000.00
03:19:06 PM 0.005 2,000,000 10,000.00
03:19:06 PM 0.005 720,000 3,600.00
03:19:06 PM 0.005 1,000,000 5,000.00
03:19:06 PM 0.005 100,000 500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 1,000,000 5,000.00
03:19:06 PM 0.005 1,800,000 9,000.00
03:19:06 PM 0.005 1,666,830 8,334.15
03:19:06 PM 0.005 890,000 4,450.00
03:19:06 PM 0.005 1,000,000 5,000.00
03:19:06 PM 0.005 125,000 625.00
03:19:06 PM 0.005 212,800 1,064.00
03:19:06 PM 0.005 300,000 1,500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 1,000,000 5,000.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 1,500,000 7,500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 400,000 2,000.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 100,000 500.00
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 200,000 1,000.00
03:19:06 PM 0.005 200,000 1,000.00
03:19:06 PM 0.005 100,000 500.00
03:19:06 PM 0.005 2,000,000 10,000.00
03:19:06 PM 0.005 600,000 3,000.00
03:19:06 PM 0.005 900,000 4,500.00
03:19:06 PM 0.005 2,000,000 10,000.00
03:19:06 PM 0.005 47,410 237.05
03:19:06 PM 0.005 500,000 2,500.00
03:19:06 PM 0.005 2,000,000 10,000.00
03:19:06 PM 0.005 3,129,651 15,648.26
03:18:10 PM 0.005 4,566,188 22,830.94 XT
03:09:19 PM 0.005 200,000 1,000.00 XT
02:42:06 PM 0.005 1,000,000 5,000.00 XT
02:20:06 PM 0.005 670,349 3,351.75
02:20:06 PM 0.005 454,651 2,273.26
10:58:37 AM 0.006 126,665 759.99 XT
10:58:37 AM 0.006 73,335 440.01 XT
10:25:30 AM 0.005 186,833 934.17

 

[sismek70]

All approvals are in place for planned activities in PRL2. Scheduled to start mid June. Program estimated cost 1.5mil, in qtrly.

 

[BESBS Player]

Yes, Sismek.

All set to go. Just a little more patience and we should see appraisal action Given the success of technology as seen at Warro and the fact that LKO wish to re-test much of the Wombat area (given they have previous data) suggests that management believe that the chances of success are strong.

Happy to hold and watch.

 

[YOUNG_TRADER]

Hey BESBS, I agree exciting times ahead with LKO, they've been quiet for so long

I was looking at LKO's AGM presentation to try and figure out what Triffon and Gangell might be valued at.

It appears Trifon and Gangell which have combined around 950BCF (Wombat is 700BCF) so its 1.35x the size of Wombat, based on that and using 30c a GJ they should get 1.35x Wombat valuation = $90m - $120m

Another point of interest is that most CSG transactions in Qld and NSW have been done at $3 per 2P so really 30c per 2P seems ridiculously cheap, however this is Vic not Qld and its tight gas not CSG, but I would have thought something like 90c 2P was more appropriate per 2P

Using 90c/2P we get $420m - $624m

So basically 3 of LKO's 6 gas fields would be worth mean $175m = 4cents LKO at 30c GJ very conservative to a more takeover target sale value of say 90c GJ which is a mean value of $522m = 12c LKO


Please note these are my estimates and calculations only at the end of the day LKO is worth what a buyer be it retail, institutional or an Oil company is willing to pay for it, I'm just trying to highlight the potential blue sky



Image 1 (Page 6 AGM pres) shows the location of LKO's RL2 (note this is one of many leases they have) and its clear to see on RL2 that there are 6 seperately identified and mapped Gas Fields with a 7th and much larger BARAGAWANATH gas field

It also shows the location of the Alinta Gas Hub and the Longford Gas facility

Image 2 (page 12 AGM pres) shows the value range for Wombat

Image 3 (page 13 AGM pres) shows the estimated reserves of gas for the other fields

 

[BESBS Player]

Hi YT.

Once drilling is announced, I suspect that many speculators will also perceive the potential value in LKO and jump on board. Until then, things just simmer away. Q3 is not far away...


Holding LKO @ .004c

 

[philly]

After a long wait, LKO has announced today that further testing of the Wombat 2 & 3 and the North Seaspray 3 wells will commence shortly. The program is designed to re enter, clean out and test the wells with nitrogen. If successful, this will increase the gas flow of these wells and be another step closer to them becoming a commercial prospect. Let's hope for success and an upward movement in the SP.
I am a long term holder of LKO. Please DYOR

 

[YOUNG_TRADER]

After a long wait, LKO has announced today that further testing of the Wombat 2 & 3 and the North Seaspray 3 wells will commence shortly. The program is designed to re enter, clean out and test the wells with nitrogen. If successful, this will increase the gas flow of these wells and be another step closer to them becoming a commercial prospect. Let's hope for success and an upward movement in the SP.
I am a long term holder of LKO. Please DYOR

Long time coming hey Philly? First drilling for like 18months or more I think

We've also got the valuations for Triffon and Gangell due out soon, see above Ive crunched some numbers on it

 

[andione1983]

Long time coming hey Philly? First drilling for like 18months or more I think

We've also got the valuations for Triffon and Gangell due out soon, see above Ive crunched some numbers on it

yeah go LKO, after reading abit of stuff on here, i jumped in 190000 at .05, so we will see how it goes aye interesting times ahead for LKO

 

[andione1983]

yeah go LKO, after reading abit of stuff on here, i jumped in 190000 at .05, so we will see how it goes aye interesting times ahead for LKO

saw this hit .007 thismorning so who knows it might be good news coming, im sure if theres an announcement it will rocket up

 

[YOUNG_TRADER]

saw this hit .007 thismorning so who knows it might be good news coming, im sure if theres an announcement it will rocket up

Well they are drilling/re working their Gippsland Gas projects so we cna expect some updates from here

As well as this we are waiting on the valuations for Triffon and Gangell which I am very confident will surprise the mkt to the upside in terms of just how much gas and what its worth that LKO actually have

An excellent link to a Govt fact sheet that I got from a poster on another forum
http://www.dpi.vic.gov.au/dpi/nrenmp.nsf/LinkView/B1A6854407650B74CA25742B000795EA8B3DA072DA032386CA2573DF001C56C6/$file/Victoria-OilAndGasFactsheet.pdf

 

[BESBS Player]

Thanks for the link, YT.

It was nice to see LKO hit .007c today. With the news from TSV's Warro looking more and more positive, this can only encourage the likelihood of LKO experiencing some success at Wombat.

1. We know that Wombat has gas. Management know the previous readings. They would not spend money and effort if they felt that it was a waste. Now the technology used at Warro is proving itself, the odds of a successful re-test at Wombat also grows.

1b. Due to technology and the the type of project, any positive upgrades on TSV's Warro project can be a positive externality for LKO.

2. Any revaluations will help get more speculator/trader attention.

3. Re-testing is starting now. Results should start to emerge in the next few weeks.

4. Although LKO have loads of shares on offer, they own the project, not just a small JV %. This also helps, especially if the Victorian supporters get behind the old LKO dog.


We might bounce around a little but I can see the SP trend continuing northward as results near...

Happily holding at .004c

 

[philly]

I note another capital raising, this time 200,000,000 shares @0.005. I know that drilling for tight gas is costly but with so many shares on issue the value for current shareholders gets more and more diluted every time there is a capital raising. Should I buy more now? Is a SSP for shareholders likely soon?

 

[RP_Automotive]

https://invest.directshares.com.au/QuotesAndResearch/News/Default.aspx?symbol=LKO&tab=ASX Company Announcements#

Positive news. It will be interesting to see what the rates are.

 

[YOUNG_TRADER]

Long time coming hey Philly? First drilling for like 18months or more I think

We've also got the valuations for Triffon and Gangell due out soon, see above Ive crunched some numbers on it

Hit and cleared at one point 0.008 well done to all the faithful holders out there

Faces a major hurdle at 0.009 if cleared (Big If) will move alot higher

Lots of news happening over the next week or 2

 

[BESBS Player]

Yes, YT. A very interesting few weeks ahead for LKO.

As I see it, LKO have positioned done very well in the past few months. Management attempted to get a merger with Cape Energy but dropped out to preserve cash when oil prices dropped. Now new technology is available for fraccing tight gas (as seen at TSV), they have set up 3 wells to be tested. These are the cheaper end (being onshore) so it minimises expenditure while drilling appraisal targets. Management know that they have gas (and now oil) within them - it is just a matter of finding out if it commercial.

Raising the $1m with Pattersons is fine with me. Explorers need cash and this was done instantly (no drawn-out SPP) and was timed perfectly with the announcements on Friday re. gas and oil in the hole. This announcement should also create further market interest. The dilution is almost irrelevant to the punters when you have so many shares already on the market. This is why the SP still goes up despite the placement. I'm happy to see $1m more in the coffers as long as it is done quickly at this point.

Even better - being largely appraisal wells, this allows the BESBS players such as me the chance to hang around and watch in the knowledge that there are more drills to come with better than the usual odds (given the appraisal rather than pure wildcat nature of these drillings). This was one reason why I was happy to invest more heavily in LKO over the last few months.

Happily holding LKO at .004c