Petroleum Exploration Permit 169 (PEP 169)

Otway Basin, Onshore Victoria

Lakes Blue Energy holds an overriding royalty interest (‘ORRI’) in Petroleum Exploration Permit 169 (PEP 169), located in the onshore Otway Basin of Victoria. While Lakes no longer holds a working interest in the permit, it retains financial exposure through a royalty arrangement over any petroleum production within the licence area.

• a 6% ORRI over 51% of wellhead income, and
• a 2% ORRI over the remaining 49% of wellhead income.

Exploration activities within PEP 169 are being progressed by ADZ Energy Pty Ltd at no ongoing cost to Lakes. The permit includes multiple exploration targets, including two priority prospects: Enterprise North and Otway-1. 

Enterprise North

Enterprise North is an onshore conventional gas prospect located near key gas infrastructure, including the Otway and Athena gas processing facilities and the Iona gas storage facility. It lies on trend with the nearby Enterprise (Beach Energy Ltd) and Minerva (Amplitude Energy Ltd) gas fields. The prospect covers up to 1,170 acres and is estimated to contain approximately 32.9 petajoules (PJ) of recoverable gas at the 50% probability level.

Otway-1

Otway-1 is a structurally defined prospect located adjacent to the Iona gas field, across a bounding fault. The proposed exploration concept involves drilling a conventional, vertical well to a depth of approximately 1,500 metres. Otway-1 targets gas in the Waarre Sands and Eumeralla Formation, as well as oil in the Pebble Point Sandstone. The Waarre Sands, which are the reservoir unit for the Iona field, are structurally uplifted at the Otway-1 location, offering a potentially favourable setting for gas accumulation.