Shares in Lakes Oil NL
(ASX:LKO) jumped 50 per cent yesterday after mining magnate Gina Rinehart bought a substantial interest in the oil and gas explorer.
Ms Rinehart’s company Hancock Prospecting has spent $4.25 million to take up an 18.6 per cent stake through a notes placement.
As part of the deal climate change commentator Professor Ian Plimer has been appointed as a non-executive director.
Lakes Oil says the issue provides it with funds to progress its oil and gas activities in on-shore regions of Victoria.
Joint venture partner Armour Energy Limited
(ASX:AJQ) has also bought $1.75 million of notes to boost its interest to 18.6 per cent.
Shares in Lakes Oil jumped 50 per cent yesterday, closing at $0.006 and lifting its market capitalisation to $41.6 million.
Lakes Oil reported a net loss of $3 million in the 2012 financial year.
