Lakes Oil Signs Preliminary Gas Sales Agreement with Simplot Australia

Lakes Oil on Friday announced that it has signed a letter of intent to supply Victorian gas to Simplot Australia.

This letter of intent relates to one of two foundation agreements that Lakes is signing with Victorian industry and will be for periods of ten years.

Simplot Australia is a leading Australian food manufacturer and wants to reduce energy used by 25% per tonne of production over a ten year period and associated carbon reduction per tonne.

Simplot has chosen Lakes’ gas because of its Victorian locations, commercial benefits and the very low Co2 (less than 1%) , compared with other sources of gas in Australia which can contain up to 25% Co2, Lakes Oil said.

The supply is subject to the execution of a formal supply agreement, final commercialisation of the Wombat field together with the lifting of the state’s moratorium on drilling for gas onshore Victoria.