The company now has the opportunity to earn 77% of a defined portion of the Vic/P47 permit by drilling a well and completing 200km of 2D seismic. The well is to be drilled by December 2004.

Following an airborne gravity and magnetic survey already carried out on the permit a seismically defined structure to be named 'Gilbert' has been mapped.

Lakes said the structure could contain up to 54mmbbls of oil in place should oil be present, or up to 26bcf of gas in place should gas be present.

Gilbert is located immediately to the north of the Patricia Baleen Fields which have recently been brought on stream. The Patricia Baleen gas pipeline crosses the Gilbert structure on its way to a new processing plant located in the Orbost area.

Renewed interest will take place next year with a number of wells planned for the area. Lakes is continuing to reprocess old seismic over the 'Gilbert' Structure and has had preliminary discussions with interested farm-in partners with the view to reducing its exposure.

Interests in the defined portion of Vic/P47 so far are Lakes Oil 77%, Bass Strait Oil Company 10%, Eagle Bay Resources 10% and Gravity Capital 3%.