lakes oil rl2

For those that dont know, there has been in the dim dark past some tie up with LKO. Left over from that relationship is a 10% holding in RPM that is owned by LKO but, of more interest, is a 5% overriding royalty that RPM has over PEL 157 that was recently converted into retention lease PRL 2. This covers the Wombat gas field discovery in Victoria.

Up to now it has been of no real value, but this month LKO are starting to talk it up. Back in 2006 they claimed that this tight gas field held >500bcf. They now are inferring that it holds more than that and they are close to declaring the field 'commercial'. They do have to drill a 4th appraisal well, wombat 4.

Now, I freely admit that LKO were doing their best to support their ssp at the time (9th May). This closed last Friday 23rd May. The LKO action today could suggest they got their funds and will survive to drill Wombat 4.

I raise this now because, up to now, RPM had 5% of nothing. I think they now might have 5 % of something, at zero cost to RPM. The Wombat field is very close to existing surface infrastructure, so if commercial, gas will find its way to market quickly.
What is 5% of say 600bcf of reserves worth to RPM? 20c? 30c? a share.

yes , it could still come to nothing, but it is looking promising.
Hang onto your RPMs.