Alls good crew and all news is good news ATM for LKO let the good times LKO it,s been 60 years in the making looks like it,s worth the wait :)$$$$$$$$
From Gippsland Times Lakes Oil confident of flows
AN exploration company drilling for gas and oil in Seaspray has found significant onshore oil flows.
Lakes Oil will be conducting exploratory drilling work at three sites in Seaspray in coming weeks.
For the last few weeks Lakes Oil has been working at a site known as Wombat 3, where Strzelecki oil has been flowing from a natural fracture that was previously hydraulically fracture stimulated.
Since the discovery oil is continuing to flow freely into the well bore along with gas and fracing fluid.
Lakes Oil executive chairman Rob Annells said the discovery was geologically significant, as Lakes Oil believes it to be the first nonbiodegraded oil flow recorded anywhere in the onshore or offshore Gippsland Basin.
"We are delighted with the results from Wombat 3, which has produced the first free flowing oil onshore in the Gippsland Basin from the Strzelecki Group,'' Mr Annells said.
He said operations at Wombat 3 had now been suspended pending the arrival of production equipment.
"At this stage, it has been difficult to measure the fluid inflow from the lower zone as gas and water from the upper zone at 1420m is flowing into the well bore at a higher rate and therefore impeding the oil flow from the lower zone,'' Mr Annells said.
"Our plan is now to run a production tubing string into Wombat 3 down to the oil zone which will enable us to more accurately assess the flow rate that can be achieved from the lower zone.
"We expect the flow rate to improve as the oil will not be impeded by the water flow from above. The reduced diameter of the production pipe will also assist in increasing the flow.''
Meanwhile work is beginning at a site known as North Seaspray 3.
Lakes Oil will begin the removal of fracture fluid that was left in the well when it was originally hydraulically fractured in 2005 and hope it will yield an unimpeded gas flow from the area of interest.
Fracing work is also about to begin at another site called Wombat 2.
"By achieving commercial flows from the wells we will have opened up a valuable new Victorian energy resource,'' Mr Annells said.
"Moreover, the gas contains 98 per cent methane and virtually no carbon dioxide, unlike other gas being used in Victoria.''
Nothing like a bit of local knowledge hey :)$$$$
GB:)$$$$$
LKO Price at posting:
1.3¢ Sentiment: ST Buy Disclosure: Held
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