A good point Baggies. In response to a posting by Wormy back on...

A good point Baggies. In response to a posting by Wormy back on the 6th... (See below) I asked a question about the quantities being reported to understand if the figures were good, bad or mediocre. I got no response but asked the question to raise some discussion and for me to understand the metrics by which these values are measured in the Oil/Gas world. It is ok to announce "a well flowing gas at 680,000cfd" but is that good? and what is the potential value of the flow per month as well as the volume to enable a total estimate of earned value.

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Monday, 6 July 2009

LAKES Oil believes it is close to commercialising the tight gas in the Wombat field, onshore Gippsland Basin, Victoria, after a re-fracturing operation on the Wombat-2 well substantially increased gas flow.



PRL 2

The company re-fractured the gas zone at 1470m in Wombat-2 and, following a clean-out, the well flowed at an initial estimated rate of 4.3 million cubic feet per day.

The flow rate later decreased and stabilised to 1.35MMcfd though a ½ inch choke.

A fracture stimulation over the same zone in 2004 resulted in the well flowing gas at 680,000cfd.

Lakes said the current flow rates were only an estimate and the sustainable gas flow rate would not be known for several weeks.

The company added it has only fracture stimulated one zone out of several known zones in the well, and with additional zones in another two wells in the field, the total flow rate from the field could be substantially increased.

Meanwhile in other company news, Lakes said Gaffney, Cline & Associates has estimated the Trifon, Gangell and Seaspray structures, also in PRL2, have a 2C contingent gas resource of 390 billion cubic feet.

According to Lakes, the Trifon field estimate, along with its previous estimate of 293Bcf of gas for the Wombat field, gives the company a total 2C resource of 683Bcf.

Lakes Oil owns 100% of PRL 2.
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