While testing has not yet been completed, a drilling report from Lakes last week said it had encountered a gross hydrocarbon column exceeding 270 metres from the Golden Beach formation.
Lakes said that given the results to date, the partners planned to drill Wombat-2 immediately following Wombat-1, located two kilometres away. The primary target of Wombat-1 is the Strezlecki formation, and Lakes said it believed the rig would be able to reach the formation without exceeding its drilling capacity. It would therefore be drilling ahead before commencing logging the well.
Lakes Oil hit lows of 2.3 cents prior to drilling (15/12/03) and this morning tipped 6.9 cents after more than 116 million shares were traded. Roma Petroleum, which has an over riding royalty, has almost doubled since reaching lows of 4.4 cents in December. Roma tipped 7.5 cents this morning.
