Enterprise North-1 The Enterprise North prospect is in close...

• Enterprise North-1
• 
  The Enterprise North prospect is in close proximity to the Otway and Athena gas processing facilities and the lona gas storage facility, and is "on-trend" with the large Enterprise (Beach Energy Ltd) and Minerva (Cooper Energy Limited) gas fields.

Figure 1: Location of Enterprise North Prospect


The reservoir rock at Enterprise North is Waarre Sandstone, which is known to have high porosity (19-25%) and high permeability (1 to 10 Darcy). Waarre Sandstone is capable of flowing gas at high rates, with 61 million cubic feet per day (MMscfd) achieved during testing of the nearby Enterprise-1 well, and with rates of up to 80 MMscfd expected once the gasfield is developed (Source: Beach Energy Ltd, ASX Release dated 15 February 2021).

Seismic data from the Enterprise North Prospect has been correlated with that from known gasfields (Enterprise and Minerva) to reduce subsurface risk. Gas charged sands interpreted in seismic studies carried out over the Enterprise North Prospect cause a bright amplitude anomaly on the seismic. This is illustrated in Figure 2, below, along with comparisons between Enterprise North, Enterprise and Minerva.

The Enterprise North Prospect covers an area of up to 1,170 acres. The prognosed thickness of the Waarre Sandstone at Enterprise North is 115 metres, similar to that encountered by Beach Energy at the Enterprise gasfield (Source: Beach Energy Ltd, ASX Release dated 15 February 2021).

The Company is working with joint venture partner, Armour, toward securing requisite approvals for drilling of the conventional, deviated Enterprise North-1 well.

The Company has also continued to advance discussions with Cooper Energy Limited Cooper Energy's involvement in the Enterprise North-1 well. In October 2023 binding terms were agreed for farmout to Cooper Energy of an interest in PEP 169. Among other things the farmout terms involved Cooper making a $1.2 million up-front payment to Lakes and funding Lakes' share of the cost of drilling the Enterprise North-1 well (up to an agreed maximum A$1.25 million cap).

During the course of discussions, it became apparent that Armour would exercise a contractual pre-emptive right to takeover the farmin arrangement and, in doing so, secure 76.1% ownership of PEP 169. Lakes did not consider this outcome to be in the interests

of its shareholders.

The Company is now working with Cooper on an alternative

relationship, details of which are presently commercially confidential but will be released as soon as finalised.