What are Lakes Oil up to?
Shareholders have been duped as this company have been spasmodically active in exploration but market price hasn't been above 2 cents for years.
Interesting past audio from Lakes Oil ex-chairman, Rob Annells.
2015- "There have been several recent media articles that I believe do not represent Lakes Oil’s
Gippsland Activities in their true light." states Lakes Oil Chairman Robert Annells.
Chairman Robert Annells states:
- Lakes Oil is not involved in Coal Bed Methane.
- Lakes Oil does not intend to get involved with Coal Bed Methane.
- Lakes Oil does not intend to, and will not frac, any rock units that are aquifers.
- Lakes Oil’s petroleum exploration permits are regulated by the Victorian Petroleum Act, and not the Mining Act, which covers coal bed methane.
The Seaspray community held a community meeting on May 11th and has started anti-CSG
campaign including all unconventional gas exploration.
Community over Mining seeks to inform that all types of unconventional gas extraction has
It is very opportune of Lakes Oil to attempt to distance their tight gas and potential shale gas
finds as different from coal seam gas for the negative focus of most current inquiries and
media attention is wrongly directed on aquifer interaction for CSG only.
Tight and shale gas has just as many environmental concerns that our current legislation and
regulation still do not accommodate for and the precious ranting by Lakes Oil Chairman only
serves to direct our focus on his company and his attempt to deceive the public.
to commence works
Lakes Oil have suddenly gone into overdrive as they prepare for the removal of the Fracking
Moratorium. "They have multiple drill pads prepared near Seaspray and one in Longford, with
pipes piled ready to go" said a concerned Jo McCubbin.
With the Seaspray Hall filled to capacity for a public meeting last Saturday, it was quite evident
that the farmers and residents of Seaspray and the adjoining communities are extremely
concerned about the disruptive changes that the introduction of unconventional gas mining
will bring to their peaceful way of life.
"We grew up swimming, fishing and playing in Merrimans creek and want our children to do the
same. We are not willing to give this privilege away and let them put in gas wells all
around us!" local Kirra Boulton said.
Last week Lakes Oil sent a tirade to its share holders begging them to believe that they are
not involved in CSG mining, however, Chairman Rob Annells, neglected to inform his shareholders
that through his subsidiary, Commonwealth Mining, there is a current exploration licence
EL5333 in the Stradbroke area for Coal Bed Methane (CSG) that borders the massive EL4416 and
is being actively pursued under the Mineral Resource Act. The fact they are heavily into Tight Gas
drilling as well is simply another form of Unconventional Gas exploitation.
"There is little difference between the risks involved in pad clearings, drill rigs, noise pollution,
truck traffic, chemicals, compressor stations, containment ponds, air pollution, hydraulic
fracturing (or other reservoir stimulation methods), radioactive radon issues and fugitive
methane leaks, when you compare tight gas, shale gas and CSG" said Monash
Environmental Engineering academic, Dr Gavin Mudd, who addressed the meeting.
Furthermore, the fact that their expansion of tight gas exploration is in the Gippsland Basin
Strzelecki formation is of major concern given the unreleased seismology report currently
held by DPI who are unwilling to release this data to the public because of the negative
results. Where is the transparency?
"These unconventional mining techniques will change our rural landscape forever and deplete
our aquifers even faster. We need to ask ourselves whether this is the future we want, or
whether we'd rather take an alternative path to a saner, cleaner future?"
There is a quirk to Victorian Law which means that Tight Gas is licenced under Petroleum
legislation whereas CSG and shale gas are considered mining. Whilst the debate continues
over poor regulation and lack of environmental protection for CSG extraction under the
MRSD Act, Tight gas, under the Petroleum Act, has slipped under the radar and has
even less regulatory oversight for companies like Lakes Oil to exploit. Unfortunately, this
petroleum legislation means that the community has no opportunity to comment or negotiate
on the conditions for management of each well and its infrastructure. .The lack of adequate
regulation was a recurrent theme in the discussions that followed the presentations. The
only action we, as citizens, can take is to refuse access to our land.
In its most recent quarterly report, Lakes Oil mentions seeking to drill deeper to oil which
sounds as if it has leaked up into their previously Fracked gas. "An interesting disclosure, since
they also appear at pains to say, that they are fracking so deep below the earth, that it will
never cause leaking upwards that might contaminate underground water!' pointed out
pediatrician Jo McCubbin.
"The bottomline, is that our community is united in wanting no part in this industry. We want
happy, healthy childhoods for the children of the district. We cannot risk the possible leaks of
chemicals, at every stage of this process and long-term risks to aquifers" added Dr McCubbin.
CSG in Gippsland
Connect the dots. State funded infrastructure upgrades in Mr Peter Ryan's seat: New
accommodation site at Seaspray. Flood proof highway from Longford to Sale. West Sale Airport
upgrade. $1.9b Port of Melbourne upgrade. Longford Gas plant approved by Wellington Shire
and EPA. Gina Rinehart buys shares in Lakes Oil Seaspray operations. "We are taking an enormous
amount of time and effort and care about the prospect of the development of any such industry"
Mr Peter Ryan, Nationals (Apr 2013). 'CSG has the potential to secure Australia's energy self
sufficiency. To turn (our) back on CSG would be fool hardy' Mr Darren Chester, Nationals
What are shale gas concerns - read more here and watch short videos from Physicians,
Scientists & Engineers for Healthy Energy
Comment from our network alliance environmental engineer re - Lakes Oil report below
- "I do love the sheer inconsistency with which geologists and the like treat fractures and fluid flow along fractures and so on - on one hand they love to focus on them as pathways for oil, gas, metal-rich solutions etc, but that's geology - from an environmental view though, fractures never leak but of course !!!"
- Wombat 3: Flow testing of Strzelecki oil
Lakes Oil believes that the live oil (~10 barrels) previously encountered in Wombat 3 has migrated along natural fractures from oil bearing source rocks located significantly below the total depth of the well.
Lakes have never fully tested this oil flow in isolation.
Lakes Oil plans to isolate the oil bearing zone in Wombat 3 in order to flow test the oil that was previously identified (2103-2105 m). It is proposed to seal off the gas/water producing zone at the top of the Strzelecki Group and run a pumping completion into the hole to test the productivity of the lower oil/gas zone.
The Company plans to install a downhole pump over the interval (2103-2105m), which will hopefully result in a substantially higher rate than achieved previously.
The well will be tested for a period of at least one month to determine the productivity from the oil zone.
The gas will be produced up the annulus and flared when necessary during testing. Depending on results, permanent surface equipment will be installed or the well shut-in.
It is planned to carry out this program as soon as possible, once all necessary approvals have been granted.
Update - Approval was granted by DPI 9th May 2013 and they recommenced well testing on the 14th May