Lakes Blue Energy Nl · ASX:LKO
Lakes Blue Energy Nl — Lakes Oil NL — Shareholder Meeting (November 2017)
32 slides from Lakes Blue Energy Nl's shareholder meeting presentation, Nov 13, 2017
Slide 1: Lakes Oil NL Annual General Meeting
For personal use only Lakes Oil NL Annual General Meeting 13 November 2017
Slide 2: Disclaimer
Disclaimer This document is not a recommendation, offer or invitation by any person to any person to sell or apply for For personal use only 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: The Past
For personal use only Lakes Oil NL “The Past”
Slide 4: Flashback – 2015/16
Flashback – 2015/16 For personal use only ▪ Management change. ▪ Navgas acquisition announced. ▪ Victorian onshore exploration ban extended to 2020. ▪ Legal proceedings against Victorian government. ▪ Funding problems.
Slide 5: The Present
For personal use only Lakes Oil NL “The Present”
Slide 6: Navgas Acquisition
Navgas Acquisition 2016/17 Update For personal use only ▪ Acquisition completed 18 January 2017. ▪ 100% ownership of ATP 1183, Queensland. ▪ Compelling drilling opportunities identified. o Wellesley Dome – prospective 41 Bcf gas resource. o Emu Apple North – estimated 3.4 million barrels oil.
Slide 7: Victorian Exploration Ban
Victorian Exploration Ban 2016/17 Update For personal use only ▪ “Fracking Ban Act”. o Hurried through Parliament in March 2017. o Aims to legitimise Government’s onshore ban AND avoid liability for damages resulting from ban. o Existing obligations specifically excluded from ban. o $42.5m Victoria
Slide 8: Legal Proceedings
Legal Proceedings 2016/17 Update For personal use only ▪ Initiated 2016; Amended June 2017 ▪ Focus is on interpretation of the amended Petroleum Act. ▪ Listed for hearing 14 March 2017, over 2 – 3 days. ▪ Gov’t Defence concedes LKO interpretation is correct. ▪ DEDJTR* proposed to unilaterally change
Slide 9: Open Offer to Government
Open Offer to Government Post 2016/17 For personal use only ▪ ‘Open Offer’ made to Victorian Gov’t on 5 Oct 2017. o Offer to cooperatively address Victorian gas crisis. o Drill specified conventional wells in accordance with legislation and coordinated with Victoria Gas Program. o Priority supply of
Slide 10: Share Purchase Plan
Share Purchase Plan Post 2016/17 For personal use only ▪ Market strength post Vic. Coalition policy announcement. ▪ $1.76m raised in October through 0.15 cent placements. ▪ SPP announced 7 November – affords shareholders opportunity to acquire shares at placement price. ▪ Use of funds: Operating and
Slide 11: The Future
For personal use only Lakes Oil NL “The Future”
Slide 12: Victoria
For personal use only Victoria Lakes Oil NL
Slide 13: S.E. Australian Gas Crisis
S.E. Australian Gas Crisis For personal use only Actual Forecast 450 400 350 300 250 PJ/a 200 150 100 50 0 2010 2012 2014 2016 2018 2020 Gippsland Production Pt Campbell Production Victorian Demand Vic + NSW Demand Vic + NSW + SA Demand Source: Australian Energy Market Operator
Slide 14: Victorian Outlook
Victorian Outlook For personal use only ▪ Southeastern Australian gas market is in crisis. ▪ Supply is tight and gas prices are rising, causing difficulty for households, industry and jobs. ▪ Victoria’s onshore gas resource could solve problems, but ▪ Victorian Government doesn’t acknowledge this po
Slide 15: Wombat-1 Flow Test
For personal use only Wombat-1 Flow Test
Slide 16: Lakes Oil's Victorian Potential
Lakes Oil’s Victorian Potential For personal use only
Slide 17: Wombat Gasfield
Wombat Gasfield For personal use only ▪ Wombat gasfield contains Contingent Resource*. ▪ Wombat-5 conventional well is ready for drilling. o Independent modelling predicts 10 TJ/d gas flow rate. o Well will establish Proven Reserves of gas. ▪ Gas can be brought to market within ~18 months. ▪ Gas wil
Slide 18: Proposed Wombat-5 Well
Proposed Wombat-5 Well For personal use only
Slide 19: Gippsland Permits
For personal use only Gippsland Permits
Slide 20: Otway-1 Gas Well
Otway-1 Gas Well For personal use only ▪ Conventional well, 400 m north of Iona gas field. ▪ Well targets Warre Sandstone and Eumeralla Formation. o Known to contain and have historically produced gas. ▪ Otway-1 well is ready to be drilled. ▪ Gas can be brought to market within months of drilling. ▪
Slide 21: Otway-1 Well
Otway-1 Well For personal use only Well site Origin Plant Iona gas storage
Slide 22: Portland Energy Project
Portland Energy Project For personal use only ▪ Targeting conventional gas from Eumeralla Formation. ▪ Gas present in all historic wells intersecting Eumeralla. o But gas potential not tested – search was for oil! ▪ Potential of Focus Area has been independently verified. o Project is a ‘game-change
Slide 23: Portland Energy Project
Portland Energy Project For personal use only
Slide 24: Lakes Oil's Victorian Potential
Lakes Oil’s Victorian Potential For personal use only Independently Estimated Prospect Potential Annual Total Wombat (PRL 2) 329 Bcf (2C) 20 Bcf Trifon-Gangell (PRL 2) 390 Bcf (2C) PEP 175 Focus Area ~150 Bcf >11 Tcf (P50) Otway-1 (PEP 169) 3-5 Bcf tbd tbd PRL 2 potential alone is 5 to 10% of Victor
Slide 25: Timetable for Project Development
Lakes Oil’s Victorian Potential For personal use only Timetable for Project Development Wombat Otway-1 Portland Energy 0 5 10 15 20 Months from Commitment Preparatory Drilling Development Production Project Planning
Slide 26: Victorian Outlook - Overview
Victorian Outlook - Overview For personal use only ▪ Victoria has lost its historic energy cost advantage. ▪ Victoria has significant gas resources waiting to be used. ▪ Pressure is mounting for common-sense to prevail. ▪ Optimistic outlook for Victorian onshore exploration. ▪ Lakes Oil has the most
Slide 27: Queensland
For personal use only Lakes Oil NL Queensland
Slide 28: ATP 1183, Queensland
ATP 1183, Queensland For personal use only ▪ Highly prospective acreage 100% owned by Lakes Oil. ▪ High success rate for wells drilled on structural closure. ▪ Prospects identified for expedited pursuit: • Wellesley Dome – 41 Bcf prospective gas. • Emu Apple North – 3.4 million barrels oil potential
Slide 29: ATP 1183 - Queensland
ATP 1183 - Queensland For personal use only
Slide 30: Wellesley Dome
Wellesley Dome For personal use only ▪ Fault-bound 3-way dip closure, 4.4 km2, south of productive field. ▪ Intersected by BHP in 1979 – good gas and porosity but not tested. ▪ 1,650 metre well proposed at location southwest of original well.
Slide 31: Emu Apple North
Emu Apple North For personal use only Emu Apple North Prospect Area ATP 1183 Lakes Oil NL Armour Energy Limited ▪ Northern extension of Emu Apple oilfield, covering 382 acres. ▪ Entire area hydrocarbon charged from Permian rocks to southeast. ▪ Shallow (~1,450 metre) well proposed.
Slide 32: Source of Resource Estimates
Source of Resource Estimates For personal use only Source: Independent Specialist Report on the petroleum assets of Navgas Pty Ltd and Lakes Oil NL, SRK Consulting (Australasia) Pty Ltd, December 2016. The Company is not aware of any new information or data that materially affects the information in