Lakes Blue Energy N.L. (ASX:LKO) Completes Final Payment from PEP 169 Sale
Sale Completion and Financial Highlights
Lakes Blue Energy N.L. (ASX: LKO) has received the final payment of A$3.5 million from the sale of its 49% interest in Petroleum Exploration Permit 169 (PEP 169). This payment, received on 10 January 2025, brings the total proceeds from the sale to A$6.5 million. Earlier, A$3 million was received shortly after the sale completion on 9 October 2024.
In addition to the sale proceeds, the company will earn an ongoing royalty of approximately 4% on the wellhead value of future petroleum production from PEP 169.
CEO Comments and Future Plans
Chairperson Roland Sleeman expressed satisfaction with the transaction: “Lakes is delighted to have received the full $6.5m of sales proceeds. The Company is now fully focussed on drilling the Wombat-5 well in PRL2, while the royalty arrangement provides meaningful upside from any petroleum production from PEP 169 without any exposure to exploration, development, or production costs.”
Most of the proceeds are earmarked for commercialising Lakes’ 100% owned Wombat and Trifon/Gangell fields in the Gippsland Basin, where independent assessments have certified Contingent Resources totalling 719 billion cubic feet of gas. The company is advancing plans for drilling the Wombat-5 well and is currently negotiating with rig operators.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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