South Australia, Pirie Torrens Oil & Gas Project
PELAs (Lakes Oil: Operator, 100% interest)

Figure: South Australian Licence Application Areas

The Pirie Torrens Oil and Gas Project incorporates six Petroleum Exploration Licence Applications (PELAs) located in South Australia and covering approximately 53,000km2 as
outlined in Figure 5. Petroleum exploration activities in the general area first commenced in 1956, when Santos was established to drill for oil at Wilkatana. This work, and subsequent
drilling by other companies, historically confirmed the presence of oil and gas across the area of interest.
Lakes Oil proposes to review and reprocess historic data, including more recent seismic information gathered by Geoscience Australia, and to investigate potential for drilling of a
stratigraphic corehole to further geological knowledge of the basin.

Of particular near-term interest to the Company are:

– the potential for oil production to the north of Wilkatana (in an area of closure, associated with the Torrens Hinge Zone, that can be identified on modern seismic data but which
has not yet been drilled);

– and the potential for production of gas from the Tindelpina Shale, which has been demonstrated to contain gas but has not been explored using modern techniques.