Rick Wilkinson
OGJ Correspondent
MELBOURNE, Apr. 25 -- Lakes Oil NL, Melbourne, has finalized an agreement with Denver-based PetroHunter Energy Corp. to jointly develop Lakes Oil's onshore tight-gas prospects in Victoria's Gippsland and Otway basins (OGJ Online, Nov. 14, 2006).
PetroHunter initially will spend $7 million to farm in to 33.33% of the Lakes permits.
It also will subscribe $3 million for new shares in Lakes Oil at 1.5¢ each.
PetroHunter will have the right to increase its position in Lakes' permits with two further 16.66% farm-in tranches of $10 million each, exercisable within 12 months and 24 months respectively.
PetroHunter will assume operatorship of the tight-gas program, which is attempting to free major gas accumulations in the Cretaceous Strzelecki formation sands that deeply underlie the producing Tertiary-age formations offshore in Bass Strait, but which are more accessible in onshore locations.
