Lakes Blue Energy Completes Wombat-5 Drilling, Eyes Gas Flow Test
Lakes Blue Energy has wrapped up drilling at its Wombat-5 well in Victoria’s Gippsland Basin, setting the stage for critical gas flow testing to assess commercial potential.
- Wombat-5 well reached 3,052 meters measured depth
- Swellable packer and suspension plug successfully installed
- Drilling rig to be demobilized ahead of gas flow testing
- Gas flow test scheduled for 10 November
- Testing results key to certifying resource as commercial reserves
Drilling Milestone Achieved
Lakes Blue Energy has announced the completion of drilling operations at its Wombat-5 well, located in the prolific Gippsland Basin of Victoria. After three days of drilling, the well reached a total measured depth of 3,052 meters, successfully penetrating the targeted Strzelecki Formation. This marks a significant technical achievement for the company as it advances its exploration program.
Securing the Well for Testing
Critical to the next phase, the company installed a 4-1/2 inch swellable packer at 2,438 meters measured depth, effectively sealing the well to prepare for gas flow testing. Additionally, a slickline suspension plug was temporarily positioned to allow safe removal of the blowout preventer and installation of wellhead equipment. These steps ensure operational safety and integrity as Lakes Blue Energy transitions from drilling to testing.
Looking Ahead to Gas Flow Testing
The drilling rig will be demobilized shortly, with the site secured pending the arrival of a workover unit and gas flow test package scheduled for 10 November. This testing phase is pivotal; it will provide the data necessary to demonstrate the commercial viability of the gas shows encountered during drilling. Success here could unlock certification of the Wombat Field’s resource as a reserve, a milestone that would elevate Lakes Blue Energy’s position as a potential major gas supplier to Victoria.
Strategic Implications
Chairperson Roland Sleeman highlighted the importance of this milestone, noting that proving commerciality is the gateway to unlocking the field’s massive resource potential. The company’s progress at Wombat-5 will be closely watched by investors and industry observers, as it could signal a new chapter in Victoria’s energy landscape amid ongoing demand for domestic gas supply.
Uncertainties Remain
While the drilling completion is encouraging, the market will await the results of the upcoming gas flow tests with keen interest. The timing and outcome of these tests will be crucial in determining the pace at which Lakes Blue Energy can move toward reserve certification and potential development decisions.
Bottom Line?
The next few weeks will be critical as Lakes Blue Energy seeks to turn drilling success into commercial reality.
Questions in the middle?
- Will the gas flow testing confirm commercial viability of the Wombat Field?
- What timeline can investors expect for reserve certification following testing?
- How might successful testing impact Lakes Blue Energy’s market positioning and funding options?
