Lakes Oil (ASX: LKO) has gone into a trading halt pending an announcement from the Victorian State Government that could affect the company’s operations.
Victoria will reportedly introduce a moratorium on fracture stimulation to address concerns raied by rural communities about the process to increase oil and gas flow rates.
Lakes had recently flagged that Beach Energy (ASX: BPT) plans to stimulate the Wombat-4 and Boundary Creek-2 wells in PRL 2, onshore Gippsland Basin.
This includes a four stage frac of the deepest zones in Wombat-4 that are representative of the tight gas reservoirs encountered in the well before looking at the shallower zones as well as a three stage operation at Boundary Creek-2 in the 200 metre thick sand package between 750 metres and 950 metres.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 28th August.
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