- Earthworks in preparation for drilling of Lake Blue Energy’s (LKO) Wellesley-2 gas well in Queensland commence, satisfying one of three key requirements for trading of the company’s securities to resume
- The earthworks involve construction of a drill pad, cellar and mud pond, as well as formation of an access track to the drill site
- Drilling of the Wellesley-2 well is expected to begin with Easternwell’s Rig #101 this month and take 10 to 14 days
- The remaining trading pre-conditions require the company to issue a full-form Prospectus, and raise a minimum of $3.55 million
- Shares in Lakes last traded on October 30, 2019, at 2 cents
Earthworks in preparation for drilling of Lake Blue Energy’s (LKO) Wellesley-2 gas well in Queensland have commenced, satisfying a key requirement for trading of the company’s securities to resume.
The earthworks involve construction of a drill pad, cellar and mud pond, as well as formation of an access track to the drill site.
Drilling of the Wellesley-2 well is expected to begin with Easternwell’s Rig #101 this month and take 10 to 14 days.
Commencement of the earthworks on December 29 satisfied one of three key ASX-specified pre-conditions for the resumption of trading Lake’s shares.
The remaining conditions require the company to issue a full-form prospectus and raise a minimum of $3.55 million.
The prospectus provides for a general public offer of shares to raise a minimum of $2.404 million and maximum of approximately $4.343 million.
Raising the minimum amount will reportedly be assured through an $800 thousand firm advance subscription commitment and a $1.604 million underwriting commitment.
The company has also secured firm arrangements for the placement of shares, in addition to those to be offered under the prospectus, to the value of $1.146 million.
The firm placements and minimum subscription under the prospectus mean the company expects to raise a minimum of $3.55 million.
Lakes have until February 1 to meet the requirements after the ASX granted the company a further extension of time in December.
Shares in Lakes last traded on October 30, 2019, at 2 cents.