Wombat-5 Well Hits 67.49% Gas Shows in Gippsland Basin Drilling Update
Lakes Blue Energy reports strong gas shows at its Wombat-5 well in Victoria’s Gippsland Basin, reinforcing hopes for a commercially viable gas development.
- Wombat-5 well drilling reaches 2,916 meters measured depth
- Gas shows up to 67.49% methane to pentane detected in Strzelecki Formation
- Drilling progressing smoothly with no lost time injuries
- Encouraging gas saturation supports commercial development potential
- Wombat-5 well currently intersecting high-quality sands near Wombat-3 zone
Strong Gas Shows in Gippsland Basin
Lakes Blue Energy has provided a promising update on its Wombat-5 well, located in the prolific Gippsland Basin of Victoria. The company’s drilling operations have reached a measured depth of nearly 2,916 meters, with the well currently intersecting the Strzelecki Formation; a key target known for its gas-bearing sands.
Significantly, the well has recorded excellent gas shows, with concentrations reaching up to 67.49% methane to pentane (C1 to C5 hydrocarbons). These high-quality gas-charged sands were encountered just prior to and within the Wombat-3 sand package, a zone previously noted for strong gas flow rates. This continuity between wells suggests a potentially extensive and commercially attractive gas reservoir.
Operational Progress and Safety
The drilling campaign at Wombat-5 is progressing well, with no lost time injuries reported, underscoring the company’s commitment to health, safety, and environmental standards. The well is being drilled with a 6-1/8 inch hole size towards a planned total depth of approximately 3,050 meters measured depth, aiming to fully appraise the gas potential of the formation.
Chairperson Roland Sleeman expressed optimism about the results, highlighting that the natural gas shows support the company’s working hypothesis of sufficient gas saturation to underpin a commercial development. This is a critical milestone for Lakes Blue Energy as it moves closer to defining a viable resource that could contribute to Australia’s energy supply.
Looking Ahead
While these drilling results are encouraging, further analysis and appraisal will be necessary to confirm the commercial viability of the gas reserves. The company’s next steps will likely focus on extending the well to total depth, conducting flow testing, and integrating data to refine resource estimates. Investors and market watchers will be keen to see how these developments translate into formal resource declarations and potential production plans.
Bottom Line?
Lakes Blue Energy’s Wombat-5 well is shaping up as a key piece in unlocking Gippsland’s gas potential, but the journey to commercial production is just beginning.
Questions in the middle?
- Will further drilling confirm the extent and quality of the gas reservoir?
- What timeline does Lakes Blue Energy envision for resource certification and development?
- How might these results impact the company’s valuation and investor sentiment?
