Lakes Oil secures retention leases

06 March 2007 | 04:00 Code : 13074 Geoscience events
A Retention Lease is an interim step provided by the Victorian Petroleum....

  Lakes Oil NL has been granted two Retention Leases covering earlier gas and oil discoveries made by the company during the past five years.

A Retention Lease is an interim step provided by the Victorian Petroleum Act, which is designed to allow exploration companies time to more fully assess discoveries prior to applying for Production Licences.The awarding of these permits are a condition precedent for the finalisation of Lakes’ proposed farm-out to PetroHunter Energy of the USA, who have agreed to spend up to US$30m to earn up to 66 and two-thirds percent interest in all of the company’s exploration permits.Lakes expects that final sign off by PetroHunter Energy will take place around the middle of this month, in time for them to finance and participate in the drilling of the Hazelwood-1 well, sited near the Hazelwood Power Station in permit PEP 166. The company currently has a small rig on site drilling the "top hole" at Hazelwood-1, with the heavier Century Rig due to arrive on site towards the end of this month.Lakes has envisaged that after the Century Rig has completed the drilling of Hazelwood-1 it will move to the Boola Boola-2 location also in PEP 166, with a second smaller rig drilling the Atherton-1 and Napier-1 wells in PEP 158 at around the same time.

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