Lakes Oil NL, Australia’s oldest oil and gas explorer, announced that it has completed the acquisition of Navgas for a total consideration of 8.6 billion fully paid ordinary shares in Lakes Oil, issued to Dark Horse Resources and two individuals.
The transaction, which was sanctioned at the company’s Annual General Meeting on 16 January 2017, saw Lakes Oil gain 100% ownership of highly prospective petroleum exploration acreage in Queensland and South Australia.
Lakes Oil said it intends to expedite exploration activity within this acreage, particularly through drilling of the largest and most prospective of identified leads within the ATP 1183 in Queensland.
According to the company, these include the Wellesley Prospect, a fault bound, three-way dip closure located to the south of the productive Kincora gas field and covering about 4.4km2, and the Major East Lead, a four way dip closure lying to the east of the existing Major gas field.
“A well will be drilled to around 1,650 metres depth to test the updip potential of the Boxville Sands, which exhibited elevated gas levels and very good porosity in the historic (1979) Wellesley-1 well that was drilled on the edge of structural closure and was untested,” Lakes Oil said in relation to the Wellesley prospect.
Regarding its plans for the Major East Lead prospect, the company said:
“A well of approximately 1,850 metres depth will be drilled to test the Showgrounds Sandstone, which is the productive formation in surrounding fields.”
CEO Roland Sleeman said the acquisition of the highly prospective Navgas exploration acreage completes an important step towards rejuvenation of Lakes Oil.
“Following years of frustration in its home state of Victoria, as a damaging consequence of unprecedented state Government bans, the Company can now get back to its core business of exploration,” Mr Sleeman stressed.