Wombat-5 Well Hits 1,470m Depth with Rising Gas Concentrations

Drilling Progress and Geological Context

Lakes Blue Energy has provided an update on its ongoing drilling operations at the Wombat-5 well, located in the prolific Gippsland Basin of Victoria. As of early September 2025, the well has reached a measured depth of 1,470 meters, progressing steadily into the Strzelecki Formation, a key target for natural gas extraction. Notably, the formation was intersected approximately 4 meters higher than expected, indicating a slightly shallower gas reservoir than initially prognosed.

The Strzelecki Formation is known for its competent rock characteristics compared to the overlying coals and clays, which has resulted in improved drilling rates. This geological advantage is helping Lakes Blue Energy maintain momentum as it approaches the planned 7-inch casing point at around 1,540 meters measured depth.

Encouraging Gas Shows Signal Potential

Significantly, the company has detected initial natural gas shows in the drilling mud, including methane, ethane, and propane. These gas concentrations have increased overnight to 2,400 parts per million, a substantial rise from background levels below 100 parts per million in the overlying Latrobe Group. Such early indications are consistent with previous wells in the area, notably Wombat-2 and Wombat-3, which demonstrated strong gas flows.

Wombat-3, for example, achieved flow rates of up to 3 million cubic feet per day from a vertical intersection of 50 meters. Lakes Blue Energy aims to surpass this by drilling a 1.5-kilometer horizontal lateral through the gas reservoir, potentially unlocking a much larger production zone than the vertical wells.

Strategic Implications and Outlook

The company’s chairman, Roland Sleeman, expressed optimism about the drilling results, highlighting that the strength and quality of the early gas shows bolster confidence in meeting the well’s production prognosis. The horizontal drilling program is designed to maximize reservoir contact, which could translate into enhanced gas recovery and improved commercial viability.

While these early signs are promising, it is important to note that gas shows during drilling do not guarantee commercial production. Further drilling, casing, and flow testing will be required to confirm reservoir quality and sustainable flow rates. Nevertheless, the current progress positions Lakes Blue Energy well to advance its exploration objectives in the Gippsland Basin.