Lakes Blue Energy Launches Wombat-5 Drilling to Boost East Coast Gas Supply
Lakes Blue Energy has commenced drilling the Wombat-5 well in Victoria’s Gippsland Basin, aiming to unlock a significant gas resource to help ease tightening supply on Australia’s east coast.
- Wombat-5 well spudded targeting Strzelecki Formation
- Wombat Gas Field holds 329 BCF 2C contingent gas resource
- Drilling and completion expected to take four weeks
- Proximity to Longford hub offers low-cost market access
- Production testing to follow with potential sales tie-in
Drilling Begins at Wombat-5
Lakes Blue Energy NL (ASX, LKO) has officially commenced drilling operations at the Wombat-5 conventional gas well, located in the Gippsland Basin of Victoria. The well, which spudded early morning, targets the gas-rich Strzelecki Formation and is designed to confirm reservoir deliverability, a critical step toward developing the Wombat Gas Field.
Significant Gas Resource in a Strategic Location
The Wombat Gas Field hosts a 2C contingent resource estimated at 329 billion cubic feet (BCF), part of a combined 719 BCF resource including the adjacent Trifon-Gangell field. This sizeable resource is strategically positioned near existing infrastructure such as the Longford gas hub and major east coast transmission pipelines, offering a potentially low-cost and efficient route to market.
Timing and Operational Details
The drilling and completion phase is expected to take approximately four weeks, after which the rig will be demobilised. Subsequently, Lakes plans to conduct production testing using a surface well test package and coiled tubing unit. These tests will assess the well’s capacity to deliver up to 10 terajoules per day of conventional gas, a volume that could meaningfully contribute to Victoria’s energy mix amid tightening supply conditions on the east coast.
Strategic Implications and Next Steps
Lakes Chairperson Roland Sleeman highlighted the importance of this milestone, noting the opportunity to unlock a significant and strategically located gas resource. The company’s broader strategy focuses on bringing new domestic gas supply online to address rising demand and supply constraints. Depending on the production test outcomes, Lakes will evaluate options for extended testing and potential tie-in to sales infrastructure, which could accelerate the path to market.
Market Context
With east coast gas markets experiencing tightening conditions and price volatility, the Wombat-5 well represents a timely initiative. The proximity to established infrastructure reduces development risk and cost, positioning Lakes Blue Energy to potentially deliver much-needed supply to the domestic market. Investors and market watchers will be keenly awaiting daily drilling updates and subsequent production test results to gauge the well’s commercial viability.
Bottom Line?
Wombat-5’s drilling progress and production tests will be pivotal in determining Lakes Blue Energy’s role in easing east coast gas supply pressures.
Questions in the middle?
- Will Wombat-5 meet or exceed the targeted 10 TJ/day production rate?
- What timeline can be expected for commercial gas sales if testing is successful?
- How will Lakes Blue Energy finance further development and infrastructure tie-ins?
