(MENAFN- ProactiveInvestors - Australia) Lakes Oil (ASX: LKO) has spudded a stratigraphic core hole designed to confirm the presence and thickness of a very rich carbonaceous sequence of shales, coals, siltstones and sandstones onshore Victoria.
This sequence had contained oil in the previously drilled well at Yallourn North-1A.
Yallourn Power-1 will also test the lateral extent and thickness and source rock potential of the Rintouls Creek Formation, which has the potential to contain oil-bearing source rock at deeper locations in the central onshore Gippsland Basin.
Success could change the understanding of the basin's petroleum geology by confirming Lakes' belief that it is possible to recover oil from carbonaceous rocks in the onshore Gippsland Basin.
Similar source rocks and shales are oil productive in the U.S. and are dramatically changing the economics of the energy market there.
Lakes has a 75% interest in Yallourn Power-1 while Armour Energy (ASX: AJQ) holds the remaining 25%.
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