Wombat-5 Drilling Complete: Can Gas Shows Translate to Commercial Success?
Lakes Blue Energy has successfully drilled its Wombat-5 well to the planned depth in Victoria’s Gippsland Basin, revealing promising gas-saturated sands that echo previous successes.
- Wombat-5 well reaches 3,052 meters total depth
- 1,500 meters of horizontal drilling through gas-rich Strzelecki Formation
- High-quality gas shows up to 35.82% concentration recorded
- Drilling operations paused to prepare for well completion
- Gas shows comparable to those in the earlier Wombat-3 well
Drilling Milestone Achieved
Lakes Blue Energy has announced that its Wombat-5 well in the Gippsland Basin, Victoria, has reached its planned total depth of 3,052 meters measured depth. This milestone marks the completion of a critical phase in the company’s exploration campaign, with 1,500 meters of horizontal drilling successfully completed through the gas-saturated sands of the Strzelecki Formation.
Encouraging Gas Shows
The final 200 meters of the well delivered further encouraging gas shows, with concentrations reaching up to 35.82% of hydrocarbons ranging from methane to pentane. These results are significant as they closely mirror the quality of sands and gas concentrations encountered in the nearby Wombat-3 well, which has been a benchmark for the project’s potential.
Next Steps in Well Completion
With drilling operations now paused, the contractor is preparing to run a 4-1/2 inch swellable packer completion into the well. This step is essential for isolating the productive zones and preparing the well for subsequent testing and potential production. The absence of any lost time injuries during the drilling phase also highlights the operational discipline maintained throughout the campaign.
Strategic Implications
The positive drilling update reinforces Lakes Blue Energy’s position in the Gippsland Basin, a region known for its gas potential. While gas shows are promising, they do not yet confirm commercial flow rates or reserves, meaning the company’s next challenge will be to demonstrate economic viability through flow testing and reserve certification. The board’s optimism, as expressed by Chair Roland Sleeman, underscores confidence in the project’s trajectory.
Market and Sector Context
This update arrives amid growing interest in domestic gas supplies in Australia, where energy security and transition to cleaner fuels remain priorities. Successful development of the Wombat-5 well could contribute to regional supply and enhance Lakes Blue Energy’s asset portfolio, potentially attracting further investment and partnerships.
Bottom Line?
The Wombat-5 well’s promising gas shows set the stage for critical flow testing that will determine its commercial future.
Questions in the middle?
- Will flow testing confirm commercial gas production from Wombat-5?
- How will these results impact Lakes Blue Energy’s reserve estimates and valuation?
- What are the timelines and costs associated with completing and bringing the well into production?
