After some research here is what I like about the LKO...

After some research here is what I like about the LKO potential...

In technical terms the definition of Conventional or Non Conventional oil and gas is determined by how easy or hard it is to recover it for commercial use. If you look back in just a short space of time and take the example of the Deep Offshore sector... at the end of the 70's offshore oil and gas below 200 metres were considered Non Conventional and not included in the Proven reserve figures. Today we have technology that enables us to recover from reservoirs 5 to 10 times that depth (2000 metres) and thus the expectations on reserves has multiplied enormously.

Put those facts in to the effort LKO have put in to continuing their pursuit of difficult (Now Conventional) reserves by use of newer and more fashionable technology is giving them a definite edge not just in actual production figures but hugely in the future portfolio of reserves and with it the future earning potential of the company.

Back on the topic of Commercial/Non Commercial, other deciding factors in the past were phiscal location of reserves and the cost of infrastructure to recover it. Just take a look at the PEL2 in isolation... this is not under a pounding ocean or in the middle of a war torn desert, it is right along side some of Victoria's core infrastructure. The net result is that the cost of new technology can be offset against the low cost recovery needs.