Armour Energy Limited
(ASX:AJQ) has increased its stake in hydrocarbon explorer Lakes Oil
(ASX:LKO) by subscribing to $1.75 million worth of $10 convertible notes to make up a shortfall from a recent rights issue.
Armours total stake in Lakes Oil now represents a fully diluted 18.6 per cent.
Armour and Lakes say they are targeting gas and oil discoveries in the onshore sections of the Gippsland basin, in areas they believe offer significant onshore oil potential.
Over the next two years Armour has options to acquire half of Lake’s project interest in two further blocks in the onshore Gippsland basin.
Armour energy reported a $1.5 million loss in the 2012 financial year.
