Eromanga Basin
ATPs 642P and 662P (Lakes Oil: Operator, 100% interest)
Lakes Oil is seeking a joint venture partner for pursuit of its western Queensland opportunities.

Surat Basin, Roma Shelf Project
ATP 1183 (Lakes Oil: Operator, 100% interest)
ATP 1183 is highly prospective for oil, gas and condensate discoveries, and is within close proximity of established production facilities and infrastructure. The tenement area itself
surrounds the Riverslea Oil Field and Major Gas/Condensate Field.
Since acquiring ATP 1183 the Company has undertaken extensive review of exploration prospects within the permit area. A number of compelling opportunities have been assessed
in detail and the Company aims to carry out an exploration well drilling campaign in the nearterm.
Given the proximity of ATP 1183 to existing oil and gas production infrastructure, any discoveries within the permit area can be brought on line quickly to provide cashflow to support
ongoing Company operations.

The key exploration prospects that the Company proposes to drill are:

Wellesley Dome
The Wellesley Dome is a fault bound, three way dip closure approximately 4.4km2 in area, lying on the Kincora-Yarrabend-Wellesley High to the south of the productive Kincora Gas

Figure 4: Wellesley Dome

A well (Wellesley-1) drilled by BHP in 1979 intersected in excess of 20 metres of thick clean Boxvale Sand. Although the well had fair gas shows and good porosity (average 28%) it was at the time not considered to be of commercial interest. Apart from the Wellesley-1 well, the extensive Wellesley Dome prospect is underexplored. With modern production techniques and at prevailing gas prices, the Company considers the Wellesley Dome to be a compelling exploration opportunity.
The Company proposes to drill an exploration well approximately 880 metres southwest of Wellesley-1 to a depth of around 1,650 metres.
The Wellesley Dome has a prospective gas resource of 41 BCF. (Refer to page 11 for cautionary statement).

Emu Apple North
The Emu Apple North prospect comprises the northern extension of the Emu Apple oilfield, an oilfield recently brought back into commercial production by Armour Energy Limited.

Figure 5: Emu Apple North Prospect ATP 1183

The prospect is a broad, low relief, anticlinal structure separated by a small saddle from the main Emu Apple Field. The entire Emu Apple area has been charged with hydrocarbons from Permian source rocks to the southeast.
The Hutton Sandstone and Boxville Sands, both of which are productive in the Emu Apple-3 well, are the main reservoir targets. The reservoir units will be intersected at shallow depths, between approximately 1350 and 1430 metres, which means drilling the Emu Apple North prospect will be low cost. The Company’s proposed well location is readily accessible by existing road infrastructure and is close to Armour’s Emu Apple production facilities (meaning any discovery can be quickly developed).
The Emu Apple North prospect covers an area of approximately 382 acres and is estimated to hold up to 3.4 million barrels of oil. (Refer to page 11 for cautionary statement).
Initial oil production rates from existing Emu Apple wells were around 100 barrels per day, with Armour Energy’s Emu Apple-3 well currently producing around 40 barrels per day.
In addition to the prospects outlined above, the Company has also identified the following exploration opportunities:

Bendee Prospect
The Bendee Prospect is a four-way dip closure located just to the west of the producing Thomby Creek Oil Field. An historic (Bendee-1) well flowed oil and water to surface, demonstrating that the structure contains oil. However, using currently available data the Company has identified that the Bendee-1 well was drilled on the edge of closure, at the level of oil-water contact. Considerable up-dip potential exists.
The Bendee Prospect covers an area of approximately 2 square kilometres and could contain approximately 1 million barrels of oil. (Refer to page 11 for cautionary statement).

Figure 6: Bendee Prospect

Major East Lead
The Major East Lead is four way dip closure approximately 5km2 in area, located to the east of the producing Major Gas Field.
The Major East Lead has a prospective gas resource of 13.8 BCF. (Refer to page 11 for cautionary statement).

Figure 7: Major East Lead

The estimates for the Queensland, Roma Shelf Project have been prepared on a deterministic basis. They are sourced from page 17 of “Independent Specialist Report on the petroleum assets
of Navgas Pty Ltd and Lakes Oil NL”, SRK Consulting (Australasia) Pty Ltd, made public in December 2016.