AFTER having the rug pulled out from under it by the Victorian Government and its ongoing opposition to onshore exploration in its State, Lakes Oil NL has decided to take its expertise to other jurisdictions.

Australia’s longest listed oil and gas company, Lakes Oil NL has signed a Heads of Agreement (HOA) to acquire 100% of NavGas Ltd and its Queensland and South Australian petroleum exploration acreage.

The company says the new exploration acreage will complement its existing petroleum exploration acreage in Victoria and Queensland and will add promising acreage in South Australia.

Lakes’ chairman, Chris Tonkin, said that in view of the Victorian Government’s adverse decisions to prohibit onshore exploration activity in Victoria, this will now be the principal focus of the company’s exploration effort over coming years, failing a softening of the Victorian Government’s position on onshore gas exploration in Victoria.

Under the HOA to acquire the remaining 96% it doesn’t hold in of NavGas from Dark Horse Resources nd two two geological consultants, Lakes will, subject to shareholder approval, issue 9,600 million shares each credited as fully paid in the amount of $0.001 per share.

The Lakes said the acquisition by early November 2016 so that it can be considered by shareholders at Lakes Oil’s AGM, scheduled for November 17, 2016.

Acreage being acquired

Pirie Torrens Basin oil and gas project – South Australia

The Pirie Torrens Oil and Gas Project incorporates six Petroleum Exploration

Licence Applications (PELAs) covering approximately 53,000 sq.km. As detailed review historical data records of an area of historic oil shows extending over 70 sq. km2at Wilkatana (within PELA 631). It is understood that this area has subsequently remained unexplored for the past 50 years.

Lakes said the Wilkatana area appears to represent a super-giant Cambrian aged oil field which has been breached by erosion.

The company said the Pirie Torrens Basin project area is favourably located adjacent to gas pipeline infrastructure and is positioned to take advantage of expected increases in local demand for gas in the eastern and southern states of Australia in the next five plus years, particularly given the gas exploration bans imposed in Victoria.

Roma Shelf oil and gas Project – Queensland

ATP 1183 on the Roma Shelf in Queensland is considered highly prospective for oil, gas and condensate targets. The granted tenement area surrounds the Riverslea oil field and the Major gas/condensate field, both of which are excluded from the permit under Petroleum Leases.

The Roma Shelf Project is situated in an area with established production facilities and infrastructure, and is well serviced by existing gas pipelines.

The Roma Shelf Project area has not been subject to modern exploration or 3D seismic techniques. Lakes said that, notwithstanding this, the success rate for all wildcat drilling in the area has been 37% for wells drilled on structural closure, which is considered high by industry standards.