26 March, 2007COMMENCEMENT OF DRILLING HAZELWOOD-1 WELLPEP 166,...

26 March, 2007

COMMENCEMENT OF DRILLING HAZELWOOD-1 WELL
PEP 166, ONSHORE GIPPSLAND BASIN, VICTORIA

Lakes Oil N.L. ("LKO") advises that its Hazelwood-1 well spudded on Saturday 24 March 2007 and at 6:00 AM today the contractor was drilling ahead in 400 mm (16") hole at a depth of 513 metres having drilled 225 metres in the past twenty-four hours.

The Hazelwood-1 well is designed to test gas which has been observed in the Strzelecki Formation in previous wells drilled in the area and to test the Rintoul's Sandstone which is expected to be encountered above basement.

Lakes Oil N.L. currently holds a 50% interest in the permit but is earning an additional 25% interest by 100% funding of the drilling of this well and the Boola Boola-1 well. AusAm Resources will then hold a 25% interest in the permit.


Yours faithfully
LAKES OIL N.L.