Portland Energy Project

08.10.2021

Lakes Blue Energy has a 100% interest in PEP167 and PEP175, which form the basis of the company’s ‘Portland Energy Project’.

The Portland Energy Project is based upon a Focus Area in the southwestern corner of PEP175, to the north of Port Fairy, selected for investigation on the basis of historic seismic and drilling data, and in recognition of the potential for production of gas by conventional means.

There has been considerable historic drilling activity in and around the Focus Area, all of which has confirmed beyond doubt the presence of natural gas within the thick Eumeralla Formation. While gas was demonstrated to exist, the potential for its production has not been historically tested since, when the existing wells were drilled, the search was for oil, there was no market available for gas and there was no gas pipeline infrastructure. These circumstances have of course now all changed. Pipeline infrastructure is available and the Victorian gas market (indeed the eastern Australian gas market) is desperate for increased supplies of gas to curtail prohibitive gas price increases.

The Company plans to unlock the potential of the region by confirming the gas content of the Eumeralla Formation and demonstrating that it can be produced.

Two wells, Greenslopes-2 and Portland Energy-1, are proposed initially as proof-of-concept wells, deigned to confirm the conventional gas production potential of the Eumeralla Formation and the underlying Crayfish Subgroup within a ‘Focus Area’ on the southwestern corner of PEP175. 

Focus Area Within PEP 175

An indication of the significant potential of the Focus Area can be gleaned from work undertaken by SRK Consulting on behalf of Lakes Oil. In May 2015 SRK used available information (essentially historic well logs and seismic data) to estimate the recoverable resources of gas within the Focus Area. SRK concluded (at a 50% confidence level) that there may be 8.3 Tcf of gas recoverable from the Eumeralla Formation and 3.2 Tcf recoverable from deeper Formations.

(Source of estimate: SRK Consulting (Australasia) Pty Ltd, as reproduced on page 29 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. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and confirms that all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons)