LKO 5,535M shares Mkt Cap at 0.009 = $50m Cash = $6m Listen Stock GER = $3m approx EV = $41m
Valuation
****PRL2**** 50% of PRL2 worth minimum $50M to LKO given this deal with Beach and more likely $100M as Beach arent putting $50m in to get $50m back more likely they want to see so the high case return of $300m for the field
So its worth minimum $50m or 0.9c and more likely $100m or 1.8c a share to LKO
****PRL3**** 100% owned Historical and recent oil company data have been compiled by our team into a single data base with the aim of constructing a composite model of the Lakes Entrance oil field that will assist in future mapping and developments in the area.
Another farm in?
****PEP166**** Farmed out 50% to Latrobe Fuels for a free carry through 2 wells before 31 Dec 2010
So free carried here
**** PEP 158**** Being evaluated
****Onshore Otway Basin**** -PEP 163 100% interest Evaluation of potential Lower Cretaceous tight gas prospects in the permit is continuing. Several prospects have been identified and will be further evaluated. A magneto-telluric (MT) survey is being prepared to complement the existing seismic data and provide better depth imaging in the area. Timing for this survey will be co-ordinated with proposed MT work to be done in PEP 166 in the Gippsland Basin.
-PEP 164 100% interest The new work program requires the drilling of a well in the second year. Detailed seismic and geological mapping is continuing with the aim of providing several prospective tight gas targets in the Lower Cretaceous Eumeralla Group in the permit.
-PEP 169 100% interest Detailed seismic mapping of conventional structural plays in Late Cretaceous reservoirs continued and at least 5 new structural prospects have now been identified in the south and southwest of the permit. Final selection for a drilling site will be decided shortly as a well is required for the work program in the near future. This block contains significant potential for hydrocarbons, located as it is within and around the flanks of the Port Campbell Embayment and on the northern limit of the Shipwreck Trough, with successful testing of the Late Cretaceous Waarre Formation. In addition to the Waarre targets, several secondary targets have been mapped in the Tertiary Pebble Point Formation and Early Cretaceous Eumeralla Formation which occur at relatively shallow depths. The secondary targets are still being evaluated as there is less drilling control data in this area. Discussions with potential joint venture partners are continuing.
ATP 560P UELEVEN BLOCK 25% JV with ICN http://www.iconenergy.com/tenements/43-australia/103-atp-560p--u11.html
**** EAGLE OIL DEVELOPMENT PROJECT, CALIFORNIA**** There has been no further progress on acquiring seismic data over the prospect during this period. The joint venturers believe that new 3D coverage will provide better resolution of structuring at depth. Mary Bellochi 1 was drilled in 1986 and flowed oil at an initial rate of 223 barrels of oil per day and 0.9 million cubic feet of gas per day.
So currently LKO is trading on the value of the farm in deal from PRL2 alone with no value for the $9m in cash and assets, the other free carried farm in deal its signed or any of its other extensive leases
the real wild card here is further farm-in's in the other Gippsland permits and dont forget about those Qld blocks guaranteed to have CSG potential imo and with JV partners like ICN and VicPet we're in good hands
LKO Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
(20min delay)