LKO - Lakes Blue Energy

[BESBS Player]

Hi YT.

Back in but small play this time (only hold 2m - to answer Fureien's query) as I just returned 20% of past LKO profit (see earlier post). Guess I feel somewhat insulated due to earlier result and the fact that the 1c SPP has, as you say, placed a floor under the SP for the moment.
Not expecting mega-results here but would love to see the SP in the 1-5c - 2c range on news in the near 2 months. Time will tell but as I have posted below, LKO do have some activities occurring that give them a chance to do this if they have some luck.
I can understand your comments and hesitation. Guess I am happy for a (hopefully) smaller profit than before.

Cheers,

BESBS Player

 

[fishyfallow]

To quote from business spectator

Lakes Oil directors buy shares via subscription

TOP NEWS
Optus renews call for telco industry reform 2:49 PM
Packer, Jacob resign from Challenger board 2:41 PM
Business confidence surges to highest level since 2003 2:20 PM
Fuld says 'let them line up' as Lehman anniversary approaches 2:29 PM
Suncorp launches $750 million 4-year bond 12:24 PM

THE SPECTATORS
Bartholomeusz: A new ceiling for leverage
DEALS TV: Sweet surprise
Gottliebsen: The risk of mega-brand mergers
The second wave of the GFC
Kohler: Easing Telstra's burden

Source: News Bites

Lakes Oil NL director Robert Annells bought 15,424,084 shares for $154,241 by subscription on September 3, 2009.

He holds 79,237,259 shares and 30,000,000 options.

Director Barney Isaac Berold bought 4,955,834 shares for $49,558.

He holds 24,779,166 shares.

Director James Syme bought 1,000,000 shares for $10,000.

He holds 3,172,771 shares.

Director Peter Begg Lawrence bought 7,550,000 shares for $75,500.

He holds 35,750,000 shares and 15,000,000 options.

STOCK DASHBOARD: September 08, 2009

 

[BESBS Player]

Yes, Fishy.
Noticed that Rob Annells supported the latest SPP.
This gives me some confidence that we might see some good news along the line. Hoping...

 

[Jez]

Perhaps this share buying by directors is in order to hold a certain % to reduce dilution. I wouldn't get too excited just yet!

 

[BESBS Player]

Either way Jez, they would only put their own $$$$ into a company if they thought that they would (at the very least) break even or benefit.

Given I am already up 265% on my first trade with LKO earlier this FY and I have only placed 20% of profits back in, I'm happy to wait and see if I can feed again from the same trough .

 

[BESBS Player]

Article from Monday's Herald-Sun. Looks like we don't have long to wait for the next wave of action in Gippsland:

LAKES Oil chairman Rob Annells is not having a lot of luck in the football this year.

His beloved Churchill Cougars failed to win back-to-back premierships in the North Gippsland league last Saturday, falling by 29 points to Heyfield.

Now Rob has his gaze firmly fixed on the last weekend in September for a grand final of a different sort as Lakes prepares for the arrival of a rig to drill its first major Gippsland Basin well after producing a three-dimensional seismic survey of its acreage.

"This well is very, very important," said Rob, who has long been an industry pioneer for the discovery and development of gas and oil in "tight" sandstone formations near Seaspray.

While nothing is ever certain in exploration, the location of the Wombat 4 well has been greatly helped by the 3D seismic, which revealed a sort of double-dome formation.

Start of sidebar. Skip to end of sidebar.
.End of sidebar. Return to start of sidebar.
The drill will be penetrating the weathered top of this second dome and if Rob wins the exploration grand final, gas might even start to flow freely without the usual fracturing and underground stimulation that encourages the sandstone to release its tight grip on the gas.

Even if that doesn't happen, a second hole with a different target depth and the use of advanced US fracturing techniques could still see Lakes Oil's significant investment over 63 years finally pay off with a move into commercial production.

A good drilling result within three months would also allow the Lakes board to place or otherwise offer the final shares in a recent one-for-four issue at 1 which raised $9.3 million out of a possible $11 million.

There have been some positive signs for Lakes recently with its Wombat 2 well producing an impressive stabilised gas flow of 1.35 million cubic feet a day after being refractured and producing oil very similar to that produced in offshore Bass Strait.

Holding LKO

 

[Putty7]

Thanks for the update BESBS player, it certainly is looking like Lakes may have some action soon, I also noticed in releases on the 8th that director Barney Isaac Berold purchased 4,393,612 shares on market for .011c on the 4th September, may mean nothing but it is good to see that the upper echelons are still investing and are committed to the result as well.

 

[DVEOUS]

I'm looking for a short term oil play, and LKO has caught my eye.
Floating around 1c it initially appears to be another penny dreadful... but I don't know.

Wombat 4
Equipment has begun arriving at Lakes Oil N.L.’s Gippsland operations base in
readiness for the drilling of Wombat 4. We are still expected to spud this well in
late September.

With only a week or so to go, this must be coming up very soon.
BESBS Player, have you any new thoughts on LKO?

I note that you hold OEX too, and I am torn which one to throw some money into this week.
LKO's Wombat 4 soon to spud and OEX's pending rig announcement.
Maybe take an each way bet on both,like you have done.

 

[BESBS Player]

G'day DVEOUS.

Yes, I tend to spread across a few BESBS oil & gas plays.
I noticed today that the SP is starting to nudge 1.2c; certainly looks like 1.1c is being tested. Given the purchases by management in recent times, I reckon Wombat 4 is worth a ride given we also have the potential wildcard action of either Wombat 2 or 3.

Happy to hold for another feed in the LKO trough

 

[DVEOUS]

Another 110,000,000 shares coming onto the market.

Did you see the options bit:

46,500,000
Options exercisable @ 5 cents each expiring 17.11.09

26,400,000
Options exercisable @ 7.14 cents each expiring 17.11.09

9,850,000
Options Exercisable @ 3 cents each expiring 17.11.09


9,850,000
Options Exercisable @ 1.5 cents each expiring 09.11.13

Hmmm.... 5 cents in 6 weeks time.
Does this mean the Directors are expecting some big moves in the SP soon?
Otherwise, why would they be at ~five time the current SP?

 

[TabJockey]

Not sure but today closed at 1.2c, a one month high. That rig of thiers should be at wombat 4 pretty soon i would think, then we will know if we have backed a winner.

 

[Putty7]

Hope u r Besbs, 5 cents would be sweet, seeing Wombat 2 cleaned up would be a good result, a lot of time and effort spent on it, Wombat 4 free flowing would be a Godsent for the sp but not holding my breath on that one, at the least the mistakes made on Wombat 2 should be learned and not made again with Wombat 4

 

[skyQuake]

They've been drilling there for longer than I've been alive and still haven't found anythign substantial. Every 2 years or so they've been raising money from 1987, tapping funds... With over 5 Billion shares on issues, its so diluted that I cant see any decent mid/long term outcome for holders.

 

[BESBS Player]

G'day Dveous.

Just seen the options.
Not sure if the 5c options are serious but made to look like management are being expected to perform to get the $$$. The 3c options look like the carrot and the 1.5c look like being the insurance package! Might sound easily pleased but if they make the 1.6c target soon, at least we should be all sitting on a good profit

3c is an outside chance. If Wombat 2 or Wombat 3 come in with good news and Wombat 4 is spudding, the SP could run as the media would love the story (we saw a hint of this in July). Wombat 4 with strong flow rates on testing would also see SP lift off. Absolutely no guarantees but LKO does have these 3 projects all capable of impacting the SP if things went well.

Watching, holding and hoping...

 

[Putty7]

New ann this morning, Lakes to spud Wombat 4 by end of week, be interesting to see where we go from here.

WOMBAT 4 UPDATE
The rig is now on site. We have been delayed by two weeks due to further approvals being required, which are now in place. Final preparations are currently in progress which should see us spud-in the well late this week.
Wombat 4 will be the first well drilled onshore Gippsland Basin with the benefit of 3D seismic. We have had the 3D data independently interpreted, which indicates that the Latrobe Group which lies above our traditional Strzelecki target has a separate closure from the greater Wombat structure. This opens up the possibility that we could have hydrocarbons trapped in the Latrobe. The Latrobe structure is bounded by major faulting giving the opportunity for migration from below. We will fully assess this zone whilst drilling, but will not test, even if hydrocarbons are present, until we have completed the well and set casing.

Only part of the ann with regards to the drilling, a bit of other stuff regarding options to employees and directors etc.

 

[BESBS Player]

G'day Putty,

If LKO can hold around 1.2c, then we might get some trader activity as spudding occurs. While Wombat 4 is a wildcat (hence increased risk), the reward of drilling success could get interest in LKO going again.


Wishful thinking but I'd love good news from Wombat 2 or 3 during the drilling of Wombat 4. News overdue (always a worry at some level) but I am comforted by the recent buying by directors.


Holding LKO at 1c ave (2nd time in the trough)

 

[Putty7]

I think you are right Besbs, someone came in and just took the 1.2c floor in one hit, 81 million shares through today so far and the interest is there early which is good, sitting with a nice buffer at 1.2c and buyers are in at 1.3c. I agree that news on Wombat 2 being sorted out would be a good kicker, Wombat 3 im not so sure about as they havent given any indication of oil volume and havent made a decision either way yet on how they are approaching it, I assume it also has gas also as it was fracced but not much mentioned about that or I havent taken it in, one of the two, looking good so far and after a quiet month good to see some excitement in the share again.

 

[BESBS Player]

G'day

Yes, I agree that Wombat 2 is the more likely source of upcoming good news (if it comes) from the previous drilling action from mid-year.
Certainly looks like the punters are getting set for the spud announcement at Wombat 4. SP has risen on good volumes from 1c (low) to finish 1.3c today in roughly a week.


Looking forward to spudding soon. (Maybe by weekend according to announcements?)


Holding LKO at 1c ave

 

[Putty7]

Lakes Oil N.L. advises that its Wombat-4 well was “spudded in” on Saturday 17th October onshore Gippsland Basin and is currently at a depth of 302m. Surface casing is currently being set and it is expected that the well will resume drilling in the next 24 hours.

And away we go, holding 5m at 1.1c, news of the partly paid shares at 1.5c may be a staller or maybe set a new short term floor within the drilling window, hopefully they will have the legs to run on.

 

[BESBS Player]

Hi Putty,

Spud news is good news!

Also see this in today's The Age:

Strengthening oil price puts heat among minnows
GARIMPEIRO / BARRY FITZGERALD
October 19, 2009

LAKES OIL The hardiest of our junior oil and gas explorers, Rob Annells' Lakes Oil (ASX: LKO), has drilled more wells than you can poke a stick at in the last 63 years. But it has yet to notch up a commercial discovery.

It is, however, as persistent as ever and is back for another try with the about-to-spud Wombat 4 well in the onshore portion of the Gippsland Basin. The offshore portion of the Gippsland Basin is home to the Bass Strait oil and gas fields and Lakes is intent on proving that the onshore portion also has commercial oil/gas potential.

This well is different from all the rest drilled by Lakes in the region in that it's the first to be drilled with the benefit of three-dimensional seismic data interpretation. That interpretation suggests that Lakes' traditional target in the Strzelecki formation is thicker in the Wombat 4 location and that there is a separate closure in the over-lying Latrobe formation - the formation that is so prolific in the offshore Gippsland Basin.

The drill bit will tell us what all that means at the end of the day. What is known is that with a share price of 1.2 ¢ and billions of bits of paper on issue, Lakes is a day-trader's dream. Confirmation of the start to drilling at Wombat 4 will be enough to cause a flurry of activity in the stock.


Happily holding LKO again at 1c ave