Hi As I understand BHP ESSO have had their platforms and leases...

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towie

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22/07/18

18:39

Post #: 34506786
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Originally posted by bjaensch ↑

Which offshore Bass Strait leases are BHP and XOM "sitting on" please?

It is quiet an old production province, historically lots of CO2 with the hydrocarbons (which makes it difficult to process), the newer fields have even higher levels of CO2 (about AUD1b was spent over the last few years to build an additional processing plant to deal with the higher levels of CO2). As such, it is an area in firm production decline.

As a person with some expertise in the drilling of oil and gas wells, both in Australia and around the word, I would also like to advise that the geology of Bass Strait is actually extraordinarily difficult to drill, which, when coupled with its tendency to have the hydrocarbons contained in increasingly small "pockets" (thus making investment payback more problematic).

Most, if not all, the "easy" production is long gone.

All of which highlights why LKO represents such a terrific opportunity, should they be allowed to drill and produce.

Finally, XOM is in a similar situation having acquired on shore leases (I seem to recall they spent in the range of AUD200m for them) very similar to those held by LKO, both geographically and geologically. In effect, they are also hamstrung in a very similar way to LKO.

My 2 cents, YMMV, DYOR etc etc

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Hi As I understand BHP ESSO have had their platforms and leases up for sale as they have not been operating and producing due to the low price of oil and gas a few years ago. I understand that this has now changed and are Not For Sale. BHP ESSO now intend to revtalise them and start producing once again due to the Current HIGH Oil Price and Gas rises . When Victoria gets rid of this Mob Of Incompetents hopefully LKO will be able to go ahead with their plans and get the Bonus of these High Prices . Cheers Towie DYOR

LKO Price at posting: 0.3¢ Sentiment: Hold Disclosure: Not Held
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Hi As I understand BHP ESSO have had their platforms and leases...

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