Lone Star Energy Limited, via it’s wholly-owned subsidiary LS Operating Pty Ltd, has entered into a Letter Agreement with BRK Oklahoma Holdings, LLC by which it will be referred opportunities to assess and undertake potential future conventional well bore drilling and or acreage acquisition opportunities. Based on discussions with BRK Oklahoma, Lone Star anticipates receiving many such referrals of opportunities.

 The first opportunity presented was the Texas Panhandle Greever Prospect. The Greever Prospect located in Hansford County, Texas in the United States approximately 96 miles north of Amarillo. The Greever Prospect is a conventional horizontal drilling opportunity in the Marmaton Formation in the Hansford Oil and Gas Field in Hansford County, Texas. The Hansford Field is described as a significant field (>1,000 Billion cubic feet (Bcf) of gas) with over 50 years of exploitation. An initial horizontal well bore was spudded in August 2017. The well is offsetting a recent successfully drilled (producing) horizontal well and is adjacent to an analogous field with five recently drilled horizontal Marmaton producing wells. The Greever Prospect opportunity is made up of 640 acres in Section 52, Block 4T in Hansford County, Texas. The Greever Prospect also includes an Area of Mutual Interest (AMI) including the adjoining Section 51, Block 4T. LS Operating Pty Ltd (LS Operating), a wholly owned subsidiary of Lone Star, has participated for a 25% working interest (with an 18.75% net revenue interest). The Sutton #2H-52 well (located within the Greever Prospect) has now been drilled, successfully completed and is currently flowing back to sales.

 The second opportunity presented to the Company is the Burgess Prospect, located in Ellis County, Oklahoma, USA. The Burgess Prospect, located in Ellis County, Oklahoma in the United State. The Burgess Prospect, NE/4 28-24N-23W Ellis County, Oklahoma, Proposes to target Marrow sands at an approximate depth of 7,850 ft. These Morrow sands are known to produce commercial quantities of natural gas from vertical wells within section 28 and adjacent sections. LS Operating agreed to participate for up to a 100% working interest (with a 75% net revenue interest) in the drilling of the Burgess well. This well has now been drilled, successfully completed and is flowing back to sales. 

On 1 December 2017, Nickelore Limited (ASX: NIO) announced it has entered into a binding agreement, pursuant to which it has agreed to acquire a 100% of the issued capital in Lone Star Energy Limited. Further details regarding the proposed acquisition are contained within the announcement and subsequent updates.