South Australian Exploration Activities Lakes Oil NL (Lakes Oil...

South Australian Exploration Activities

Lakes Oil NL (Lakes Oil or Company, ASX: LKO) notes yesterdays announcement by
the South Australian Government that it intends to implement a range of energy related
initiatives, including “incentivising increased gas production”.

For information of Shareholders, Lakes Oil confirms it is investigating options for
assessing the oil and gas production potential of the Company’s South Australian
exploration acreage, within the Central Flinders Ranges to the north of Port Augusta
(see Figure below). Of particular interest from the perspective of gas production is the
Tindelpina Shale, which has been historically shown to contain gas, but which has not
been explored using modern techniques.

Lakes Oil is well advanced in discussions that could pave the way for the potential of
the Company’s South Australian acreage to be assessed through information sharing
arrangements with other exploration companies, potentially including the drilling of
stratigraphic corehole(s). If the Tindelpina Shale proves to be productive then supply of
gas to meet South Australian requirements will be straightforward, given the proximity
of the project to the Moomba to Adelaide Gas Pipeline.

Lakes Oil will work closely and cooperatively with the South Australian and Federal​

Governments toward increasing the availability of competitively priced natural gas.