might explain the increased volume

A good and valid reason for LKO's rally could be the rumour of a take over

Could see another big day tomorrow

The Chairman of LKO quoted LKO may be a take over target

"In view of the historically low price of Lakes shares, resulting in a very low market capitilisation (less than the cost of one offshore well), we are concerned that these low levels could leave the Company vulnerable to takeover".

Also It is also probable LKO will find a better reservoir at the top of the structure and therefore better flow potential. This leads Lakes Oil to believe it has discovered a major new Victorian asset at a time when gas prices are starting to move upward and consumers are calling for new suppliers on the East coast.