The six original drill stem tests (DST) resulted in various flows of between: 25,000 cubic feet of gas per day from the Golden Beach sands; 250,000 cubic feet of gas per day from the Strzelecki/Golden Beach Formation; and 100,000 cubic feet of gas per day on a ¼ inch choke from the Golden Beach.

The new program will involve re-entering the original well and running a 7 inch casing to approximately 1200 metres, where it will be tied into the existing 7 inch casing, previously set between 1196 metres to 1757 metres.

Halliburton Australia will then carry out a "Stim" mini fracturing technology, which will re-perforate the casing between 1500 metres and 1596 metres. This will involve the re-stimulation of existing perforations and the creation of others in sections of the casing, which were not previously tested.

Lakes has also increased the section selected for re-testing from the 60 metres to 96 metres as a result of further studies of original drill stem tests and logs.

Should everything go to plan the "Stim" frac should take place towards the end of next week with preliminary results due shortly after.

Once the re-testing of Wombat-1 has commenced, the rig will no longer be required on site and the company will release it as soon as possible to begin drilling Wombat-2 approximately two kilometres to the south west.

Funding for the current re-testing program and drilling of Wombat-2 has been made possible by the current Shareholder Share Purchase Plan, which is scheduled to close on the 15 March 2004.

Lakes has also enjoyed a surge in market trading with over 25 million shares swapping hands, pushing the stock price towards 5.8 cents this morning.