Lakes Blue Energy Nl · ASX:LKO
Lakes Blue Energy Nl — Lakes Oil NL — Cutting Edge Series (November 2013)
23 slides from Lakes Blue Energy Nl's conference presentation, Nov 19, 2013
Slide 1: Presentation to the Cutting Edge Series
Lakes Oil NL Presentation to the Cutting Edge Series For personal use only The oldest oil and gas exploration company in Australia, moving to produce from Victoria’s new gas province – onshore Gippsland Basin
Slide 2: Disclaimer
Disclaimer For personal use only This document is not a recommendation, offer or invitation by any person to any person to sell or apply for securities in the Company and does not constitute financial product advice. The document is not a prospectus under Australian law or under any other law. It is
Slide 3: Corporate Snapshot
Corporate Snapshot Securities on Issue For personal use only Fully Paid Ordinary Shares (ASX:LKO) 7,208,868,039 Partly Paid Ordinary Shares ($0.015 shares paid 191,500,000 to $0.001) Total Shares on Issue 7,400,368,039 Market Price at Last Sale (Closing 18 November 2013) $0.006 Listed Unsecured Conv
Slide 4: Lakes Oil’s Victorian Permits
Lakes Oil’s Victorian Permits For personal use only
Slide 5: PEP Otway Basin
PEP 169 Otway Basin For personal use only PROPOSED OTWAY 1 • Otway 1 will be located adjacent to and up-dip from the Iona Gas Field • Three objectives in a tilted fault block with closures at three potential levels The targets are: Pebble Point Formation, Waarre ‘C’ Formation and Eumeralla Formation
Slide 6: The Hard Road to Commercialisation
For personal use only The Hard Road to Commercialisation
Slide 7: Previous Seismic Surveys
Previous Seismic Surveys Offshore has been extensively surveyed over a 30 year period. For personal use only Onshore seismic coverage is sparse and old. • Last seismic onshore in 1984. • Major technological advances since 1984 not yet applied onshore. • Planning to acquire 3D seismic over the Wombat
Slide 8: Simplified Diagrammatic Cross-Section
Ore OILNLL. NW SE Eastern Highlands Offshore Oil & Gas Production mae, Ie . Cocvicld Barracouta Marlin Mackerel (Projected) Gas Field Oil & Gas Field Oil Field =o Tertiary aquifers and ++! coal seams Tertiary seal La Late Cretaceous rocks Early Cretaceous rocks il” Basement @@ Oil & gas production f
Slide 9: Yallourn North - Site of original shale oil core hole
For personal use only Yallourn North - Site of original shale oil core hole HOLDGATE1
Slide 10: Schematic Cross Section of Wombat Field
Schematic Cross Section of Wombat Field Showing 2C Gas in place Resource Cut-off For personal use only
Slide 11: Technology Changes Solved with Access to US Input
For personal use only Technology Changes Solved with Access to US Input
Slide 12: Hydraulic Fracture Stimulation
Hydraulic Fracture Stimulation For personal use only TECHNOLOGY CHANGES OVER THE LAST 10 YEARS • Sequential multiple zone stimulation. • Increased fracture propagation length. • Dramatic improvements in synchronised breaker technology. • Improved computer modelling to allow accurate pre-frac predict
Slide 13: Radial vs Linear Flow Path in Reservoir
For personal use only Radial Flow Path in Non-Fractured Reservoir Wellbore Hydrocarbon Flow Paths Overhead view of reservoir Linear Flow Path in a Hydraulically Fractured Reservoir Hydraulic Fracture Hydrocarbon Flow Paths Overhead view of reservoir
Slide 14: What Is in a Typical Frac Fluid
For personal use only WHAT IS IN A TYPICAL FRAC FLUID 11/19/2013 All Rights Reserved SPC LLC 14
Slide 15: For personal use only
For personal use only
Slide 16: Lack of Understanding of the Resource from Government Bodies
For personal use only Lack of Understanding of the Resource from Government Bodies
Slide 17: Yallourn North - Site of original shale oil core hole
For personal use only Yallourn North - Site of original shale oil core hole HOLDGATE1
Slide 18: For personal use only
For personal use only
Slide 19: The Current Confusion of Coal Bed Methane and Tight Gas
For personal use only The Current Confusion of Coal Bed Methane and Tight Gas and the Way Forward
Slide 20: Mud Island
For personal use only Mud Island
Slide 21: Simplified Diagrammatic Cross-Section
LAKES OIL NLL. NW Eastern Highlands Lakes Latrobe Valley Wells Boundary Ck 2 Tertiary aquifers and coal seams Tertiary seal | Late Cretaceous rocks Early Cretaceous rocks A) _| Basement ®@ Oil & gas production from aquifers in Latrobe Group x Zones fracture stimulated in Strzelecki Group by Lakes Oi
Slide 22: Wombat-5 Schematic
For personal use only Wombat-5 Schematic
Slide 23: Commerciality through New Technology
For personal use only Commerciality through New Technology Lakes Oil has learned a tremendous amount about the onshore Gippsland Basin following the investment of over $50m in drilling, stimulating and testing activities: • Unique position to market • Next to one of Australia’s major gas hubs • Serv