Lakes Blue Energy Hits Promising Gas Shows at Wombat-5 Well
Lakes Blue Energy reports encouraging natural gas readings from its Wombat-5 well in Victoria’s Gippsland Basin, advancing drilling towards a significant commercial gas target.
- Wombat-5 well reaches 1,612 meters measured depth after three days
- Strong natural gas shows including methane to pentane detected
- Horizontal drilling progressing at 20 meters per hour
- Targeting 3,050 meters total depth with 1,500-meter lateral section
- Potential access to 250 billion cubic feet (BCF) of gas resources
Drilling Progress at Wombat-5
Lakes Blue Energy has provided a positive update on its Wombat-5 well, located in the prolific Gippsland Basin of Victoria. After three days of drilling, the well has reached a measured depth of 1,612 meters, with the horizontal production hole section now underway. The drilling team has advanced 60 meters in the last 24 hours, maintaining a steady pace of approximately 20 meters per hour.
Encouraging Gas Shows
Significantly, natural gas readings have increased as drilling progresses through the Strzelecki Formation, the primary target zone. Gas shows comprising methane, ethane, propane, butane, and pentane have been recorded at concentrations up to 16,200 parts per million. These multi-component hydrocarbon indications suggest the presence of commercially viable gas volumes, reinforcing the prospectivity of the Wombat field.
Commercial Potential and Next Steps
The company is targeting a total drilling depth of 3,050 meters, including a 1,500-meter horizontal lateral designed to maximize reservoir contact. Chairman Roland Sleeman expressed optimism about the well’s potential, highlighting the estimated 250 billion cubic feet of gas resources that could be accessed upon successful completion. While these figures are based on contingent resource estimates and require further appraisal, the current drilling results provide a tangible step towards commercial production.
Context and Caution
It is worth noting that these resource estimates remain contingent on further evaluation and development decisions. The company has reported zero lost time injuries during the operation, underscoring a safe and efficient drilling campaign. Investors will be watching closely for subsequent updates that clarify the well’s flow potential and economic viability.
Bottom Line?
Wombat-5’s promising gas shows mark a key milestone, but the journey to commercial production still hinges on further appraisal and evaluation.
Questions in the middle?
- Will subsequent drilling confirm the commercial flow rates needed for production?
- How will these gas shows impact Lakes Blue Energy’s valuation and project financing?
- What timeline is expected for completing the well and moving towards development decisions?
