new on the oil, page-11

Nothing like good publicity to set a rocket under things:

Mathew Murphy:

[I]The Age[/i] July 2, 2009:

LAKES Oil's Wombat 2 well in the onshore Gippsland Basin has flowed gas at a rate that, if sustained, would make the project one of the largest onshore in Victoria.

Melbourne-based Lakes said Wombat 2 had produced a stabilised gas flow of 1.35 million cubic feet a day after the well was refractured. It said the result moved the project closer to achieving commercialised flow rates.

The sustainable gas flow will not be known for several weeks but Lakes has two untested wells that have been declared suitable for fracture and that have the potential to increase the total flow rate substantially.

Lakes Oil chairman Rob Annells said it was an exciting development.

"These are big numbers that are independently put to us and I think we are just about there," he said. "We were expecting figures in that order."

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It is not just the size of this first gas flow but the fact that there are other options to fracture more tests in Wombat 2, then add Wombat 3 (which already shows a little oil as well), then the Gangell & Trifon upgrades.

Go Lakes Oil!!!