The Melbourne-based company said the survey would be undertaken over the Wombat and Steele structures, both in PRL2, Victoria.

“The 3D seismic will be the first ever 3D shot in onshore Gippsland,” Lakes chairman Robert Annells said.

“We have high hopes it will assist us in unlocking the development of the region.”

Annells said the data would help the company optimally locate the Wombat-4 well, which is due for drilling at the end of next quarter depending on rig availability.

“Having regard to the amount raised, it has been decided that our best course is to drill a new Wombat well and then fracture stimulate that well rather than taking the risk of re-working old wells, namely Wombat 1, 2 and 3,” he said.

“Those wells can still be re-worked at a later date should we receive the positive results which we anticipate will eventuate in Wombat-4.”

Lakes raised $3.8 million via a one-for-three rights issue to shareholders, which was closed under-subscribed.

The shortfall of this issue will be made available to Lakes’ directors at a price of at least 1c per share.