In early 2008 Lucas was the preferred tenderer for petroleum exploration permit 17/07-8EP, covering 8,010 square kilometres of the Canning Basin. The Company considers the acreage prospective for shale gas, shale oil and tight gas. The grant of this permit is subject to the Native Title Act 1993. The Company is currently negotiating with the three groups whose native title claims overlap the permit area.
Lucas’ negotiations to date have been directed towards the possibility of a site visit between the Company and the traditional landowners to determine whether there are any locations within the permit application area that are of cultural significance, and are therefore likely to be excluded from the permit area, or alternatively made the subject of a “no mining” condition.