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Internet Site: www.lakesoil.com.au
Email Address: [email protected]
LAKES OIL N.L.
(A.C.N. 004 247 214)
Registered Office:
Level 11
500 Collins Street
Melbourne Vic. 3000
Telephone: (03) 9629 1566
Postal Address:
P.O. Box 300
Collins Street West
Melbourne Vic. 8007
Facsimile: (03) 9629 1624
20 August 2004
The Manager - Companies
Australian Stock Exchange Limited
Stock Exchange Centre
530 Collins Street
MELBOURNE VIC. 3000
Dear Sir,
PEP 157 – ONSHORE GIPPSLAND BASIN, VICTORIA
UPDATE WOMBAT 1 AND 2 FRACTURE STIMULATION PROGRAM
Lakes Oil (“LKO”) reports that the Wombat 2 well has continued to flow gas at various rates, whilst
an optimum choke setting was achieved during the last twenty-four hours. A sustained, stabilised gas
flow rate of 1.8 million cubic feet of gas per day was measured on a one-inch choke. The well
continues to flare gas and to recover frac fluid.
The well will be flowed in the next twenty-four hours whilst frac fluid is being recovered and it is
expected that a production test through a separator will be conducted on the well during the course of
next week.
The frac spread is currently being rigged up on Wombat 1, with the fracture stimulation expected to
be conduced over the weekend.
Final preparation is under way at Trifon 2 and this well is expected to be perforated and prepared for
fracture stimulation later in the week. The frac spread will be mobilised from Wombat 1 to Trifon 2
following the completion of the fracture stimulation of Wombat 1.
The Trifon 2 operation has yet to be finalised and is subject to successful completion of the cement
clean out operation which is being conducted today.
The Wombat wells are located in PEP 157. An overriding royalty of 5% of the wellhead value of any
hydrocarbon production is payable to Roma Petroleum N.L. a former permit holder.
Yours sincerely
LAKES OIL N.L.
ROBERT J. ANNELLS
Chairman