The Directors of Lakes Blue Energy NL announced that binding terms have been agreed with Cooper Energy Limited (Cooper) for farmout to Cooper of an interest in Petroleum Exploration Permit 169 (PEP 169), in the Otway Basin, Victoria. PEP 169 contains the promising Enterprise North Prospect, which is now targeted for drilling around mid-2024. The farmout terms include: Completion of the farmout is subject to completion of due diligence, finalisation of transaction agreements and receipt of requisite consents and approvals.

This includes consent of Armour Energy Limited which, under existing PEP 169 joint venture arrangements, has a pre-emptive right to match the proposed transaction. Upon signing of the transaction agreements: Cooper will make an upfront payment of $1.2 million to Lakes that, together with the proceeds of the Company's recent rights issue, will see Lakes fully funded through 2024; and A 25.1% interest in PEP 169 will be transferred to Cooper; and Lakes' share of the cost of drilling the Enterprise North-1 well will be funded by Cooper, up to an agreed maximum AUD 1.25 million cap.