Lakes Oil (ASX:LKO) has been awarded two new permits in the offshore Gippsland Basin for exploration over the next six years.
The permits are located close to shore, and close to existing oil and gas pipelines, which will allow low production costs in event of discovery.
Last month, Lakes purchased petroleum exploration permits PEP 167 and PEP 175 in the onshore Otway Basin, Victoria for $300,000.
And in July, the company signed a conditional letter of intent to supply Victorian gas to Simplot Australia.
Simplot Australia is a leading Australian food manufacturer, producing such brands as Leggo’s, Edgell, Birds Eye, John West and Chiko.
Lakes holds over $3 million in cash.
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