+++++++++++++++++++++++++ Lakes Oil NL (LKO), advises that further to its announcement to the Australian Stock Exchange on 31 May 2001 an additional report has been received from Halliburton Australia Pty, Ltd assessing the potential to increase production rates recovered in the Trifon and Gangell wells using hydraulic fracturing techniques.
The report is an indication of the potential for using hydraulic fracturing techniques. Should the fracturing be successful, the potential recoveries would significantly increase the value of the company. In the interest of Ml disclosure we are reporting the best zones for each well according to the Halliburton reports, remembering that gas occurred in both these wells over more than 1,000 metres giving the opportunity to fracture the reservoir at several points. Other intervals have been assessed and will be looked at to fully evaluate the potential of this large section.
TRIFON-1
Zone from 4,477 to 4,670 feet could produce up to 17 million cubic feet per/day of gas and 72 bbl water.
GANGELL-1
Zone from 6,178 to 6,288 feet could produce up to 16.9 million cubic feet per/day of gas. No water recoveries where given in this report.
The major qualifications to these results is that of the water present in the formation. We will not know until we re-drill and fracture the reservoir what the final gas recovery number will be.
Halliburton Australia is the Australian subsidiary of Halliburton US one of the largest provider of products and services to the petroleum and energy industry. The company operates in 100 countries around the world.
The report and this release has been reviewed by Mr E A Webb, BSe, MAAPG, F AusIMM.
R J Annells E A Webb CHAIRMAN TECHNICAL CONSULTANT
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