Wombat-5 Drilling Progress: Can Lakes Blue Energy Confirm Commercial Gas?
Lakes Blue Energy reports promising natural gas indications at its Wombat-5 well, with increasing concentrations of hydrocarbons detected as drilling progresses into the Strzelecki Formation.
- Wombat-5 well drilled and cased to 1,549 metres into Strzelecki Formation
- Natural gas shows include methane, ethane, propane, butane, and pentane
- Gas concentrations increased to 7,000 ppm in drilling mud
- Horizontal drilling planned to reach 3,050 metres measured depth
- No lost time injuries reported during drilling operations
Drilling Progress at Wombat-5
Lakes Blue Energy has provided an encouraging update on its Wombat-5 well located in Victoria's Gippsland Basin. After three days of drilling, the well has been successfully drilled, cased, and cemented to a depth of 1,549.1 metres measured depth (MD), reaching into the Strzelecki Formation, which is the targeted gas reservoir. This milestone marks a significant step forward following recent operational challenges.
Encouraging Gas Shows
As drilling continues, natural gas shows comprising methane, ethane, propane, butane, and pentane have been detected in the drilling mud. Concentrations have risen to as high as 7,000 parts per million, a notable increase from earlier readings of 2,400 ppm. These findings align with previous gas shows recorded in nearby wells Wombat-2 and Wombat-3, suggesting a consistent presence of hydrocarbons in the formation.
Next Steps in Drilling
The company plans to extend the well horizontally by approximately 1,500 metres from the current casing point, aiming for a total depth of 3,050 metres MD. This horizontal section is expected to encounter even stronger gas shows, which will be critical in assessing the commercial viability of the resource. The drilling is being conducted with a strong safety record, with zero lost time injuries reported to date.
Strategic Implications
These developments at Wombat-5 could enhance Lakes Blue Energy's position in the Gippsland Basin, a region known for its hydrocarbon potential. While the gas shows are promising, further drilling and testing will be necessary to confirm the size and quality of the resource. Investors will be watching closely for subsequent updates that clarify the well’s commercial prospects.
Bottom Line?
As drilling advances, the next phase at Wombat-5 will be pivotal in defining Lakes Blue Energy’s resource potential in Gippsland.
Questions in the middle?
- Will the horizontal drilling confirm commercial quantities of gas?
- How might these gas shows impact Lakes Blue Energy’s valuation and development plans?
- What timeline is expected for flow testing and resource certification?
