Lakes Blue Energy Raises $6.5M, Eyes Near-Term Gas Supply and CO2 Project

Capital Raise Strengthens Balance Sheet

Lakes Blue Energy NL has successfully completed a $6.5 million capital raise in June 2025, bolstering its cash position to $2.6 million at the end of the quarter. The first tranche of $5.6 million was received shortly after quarter-end, with the remaining tranche subject to shareholder approval. This fresh capital injection provides the company with the financial flexibility to advance its key exploration and development projects.

Wombat-5 Drilling Set to Unlock Gas Supply

The company is progressing drilling preparations for the Wombat-5 well in the Gippsland Basin, targeting a conventional gas reservoir within the Strzelecki Formation. Drilling is scheduled to commence on 31 July 2025, following the completion of earthworks and rig mobilization. Independent assessments estimate the well’s production potential at around 10 terajoules per day, contributing to a combined 20 petajoules per annum from the Wombat and adjacent Trifon-Gangell fields. This volume represents approximately 10% of Victoria’s annual gas demand, positioning Lakes Blue Energy as a potential near-term supplier to the east coast market.

Exploration Momentum at Portland and Beyond

Exploration activities continue at the Portland Energy Project in the Otway Basin, with regulatory applications and well design underway. Drilling of two vertical proof-of-concept wells is targeted for the second quarter of 2026. Independent studies suggest recoverable gas resources of up to 8.3 trillion cubic feet within the Eumeralla Formation, highlighting significant upside potential. Meanwhile, the company is actively managing a diverse portfolio including permits in Queensland, Papua New Guinea, and South Australia, with ongoing decommissioning and rehabilitation efforts at select sites.

Nangwarry Carbon Dioxide Project Advances

In South Australia, Lakes Blue Energy has signed a binding Heads of Agreement with Beijing Maison Group to fund a bankable feasibility study for the Nangwarry carbon dioxide project. This initiative aims to develop a food and beverage-grade CO2 plant, leveraging the certified CO2 sales gas resource estimated between 9 and 64 billion standard cubic feet. The partnership allows Lakes to progress this promising project with minimal diversion from its core oil and gas activities, potentially opening new revenue streams in industrial and medical CO2 markets.

Financial Discipline and Shareholder Value

During the quarter, Lakes Blue Energy spent $918,000 on operating activities, predominantly on exploration and evaluation. Notably, no payments were made to directors during this period, with fees accruing. The company maintains a conservative approach to capital management while advancing its exploration and development pipeline. With 66.7 million shares on issue, shareholders are positioned to benefit from the company’s near-term production prospects and strategic project developments.