Found this in todays Herald Sun business section.Lakes Oil makes...

Found this in todays Herald Sun business section.

Lakes Oil makes leap.

Premier John Brumby hasn't had a lot of good news on the revenue side recently, so he will be an interasted spectator as listed Gippsland explorer Lakes Oil tries to make a transition to production.

Unlike offshore oil and gas, tax from onshore production goes straight to the State Government rather than to Canberra.

Which means a 10 per cent royalty on all oil and gas Lakes Oil can produce, which would be more than welcome in Spring Street as the recession cuts chunks out of property and payroll taxes.

Of course it may be some time before Lakes Oil really hits its stride but oil is continuing to flow at its Wombat 3 welland advanced fracturing equipment is trying to free more gas flow from Wombat 2 and North Seaspray 3.

The company hopes to produce commercial quantities of gas out of its "tight sandstone formations with the added advantage that Wombat gas contains virtually no carbon dioxide which would help the state reach its greenhouse gas targets.

After Briefly poking its head above the 1c mark last week, Lakes Oil shares closed steady yesterday on 0.8c.