Lakes Blue Energy reports strong gas shows and excellent reservoir quality from its Wombat-5 appraisal well in Victoria’s Gippsland Basin, setting the stage for imminent production testing and potential field development.
- Wombat-5 drilled 1,500m horizontally through gas-rich Strzelecki Formation sands
- Three significant gas-saturated sand intervals identified, including a new discovery
- Well cased to 2,438m with a barefoot completion below, despite stuck drilling equipment
- Production testing scheduled for 10 November 2025 to assess commercial viability
- Positive outlook for east coast gas supply and upcoming feasibility study
Strong Gas Shows in Gippsland Basin
Lakes Blue Energy has revealed encouraging results from its Wombat-5 appraisal well, drilled in the prolific Gippsland Basin of Victoria. The well was drilled nearly horizontally for approximately 1,500 metres through the Strzelecki Formation, a known gas-bearing reservoir. During drilling, three distinct sand intervals exhibiting high porosity and very high gas content were encountered, confirming the formation’s potential as a commercial gas resource.
The gas concentrations measured while drilling showed clear peaks coinciding with these sand packages, which were further validated by gamma ray data indicating good reservoir quality. Notably, the middle gas interval represents a new discovery, expanding the understanding of the Strzelecki Formation’s gas saturation and reservoir complexity.
Technical Challenges and Completion Strategy
The well was successfully cased to a depth of 2,438 metres using a 4-1/2” swellable packer completion, which avoided cementing and thus minimized formation damage. However, a lost bottom hole assembly at around 2,800 metres and a suspected fault zone at 2,450 metres prevented the completion from reaching the total depth of 3,052 metres. Despite this, Lakes Blue Energy expects the lower gas intervals to contribute to production through pathways created by drilling mud returns.
This technical approach ensures that all identified gas sands can potentially produce into the wellbore, maximizing recovery prospects. The proximity of the Wombat Gas Field to existing third-party infrastructure and the high quality of the gas further enhance the project’s attractiveness by reducing processing and delivery costs.
Next Steps and Market Implications
Chairperson Roland Sleeman expressed satisfaction with the drilling outcomes and outlined the company’s immediate plans. Production testing is set to commence on 10 November 2025, which will provide critical data on flow rates and reservoir performance. Provided these tests are successful, Lakes Blue Energy intends to undertake a resource re-evaluation and a comprehensive feasibility study starting in December.
These steps will inform the formulation of a field development plan aimed at bringing this vital gas resource to market. Given the ongoing east coast gas shortages, the Wombat Gas Field could play a significant role in alleviating supply constraints and supporting energy security.
Overall, the Wombat-5 well results mark a pivotal moment for Lakes Blue Energy, transitioning the company closer to production and commercialisation. Investors and market watchers will be keenly awaiting the upcoming production testing outcomes to gauge the project’s full potential.
Bottom Line?
Wombat-5’s promising gas shows set the stage for critical production tests that could reshape Lakes Blue Energy’s future.
Questions in the middle?
- Will production testing confirm commercial flow rates from the multiple gas intervals?
- How will the stuck bottom hole assembly impact long-term reservoir productivity?
- What timeline and capital requirements will the forthcoming feasibility study reveal?