New announcement from LKO just released.The company has been...

New announcement from LKO just released.
The company has been doing some additional research.


PEP 166 LATROBE VALLEY ONSHORE GIPPSLAND VICTORIA.
Lakes Oil (“LKO”) and it’s 50% Joint Venture Partner AusAm Resources NL are the permit holders of PEP 166 which was granted in January 2003. This permit of 3,567 sq kms covers the entire Latrobe Valley and is the home of Victoria’s brown coal power generation which provides the majority of the State’s electricity.

Since obtaining this permit the Joint Venture has conducted a review of past hydrocarbon exploration, together with an assessment of gravity and magnetics recently acquired by BHP/Billiton using their revolutionary airborne technique. The Joint Venture’s assessment has confirmed several dome like structures occurring in the permit, two of which coincide with open cut coal mines at Loy Yang and Hazelwood.

Unfortunately, there has been little exploration activity in this permit with one modern well Loy Yang 1 being drilled in 1994. This permit like most of the onshore Gippsland has been ignored for too long. Loy Yang 1 was drilled to a depth of 1736 metres very close to the power station of the same name and was designed to test the Loy Yang dome. Its targets were the Rintoul’s Creek Sandstone and the underlying Tyers conglomerate; both were prognosed to lie in the basal Strzelecki Formation. Dips encountered in the well suggest that the well was located off structure at the Strzelecki level and it appears that the well did not reach its primary targets. Oil and gas shows were encountered in the Strzelecki Formation.

Through its activities at Trifon and Wombat, Lakes Oil now has an excellent understanding of the Strzelecki and recognise the potential for oil and or gas in these large domal features as untested. Because of the strategic location of these targets almost directly under the power stations at Loy Yang and Hazelwood, it has become high priority that these structures be drilled. Natural gas is a clean fuel which is ideal for peak load electricity generation.

Preliminary discussions are continuing with one of the power companies in the valley, which could see them join with the joint venture in drilling a well.

Yours sincerely
LAKES OIL N.L.

Happy Trading.
Ace..