Lakes Blue Energy plans Wombat-5 well operation

Lakes Blue Energy NL (ASX:LKO) has submitted an Operation Plan for the drilling of the conventional Wombat-5 well to the Victorian Regulator, Earth Resources Regulation (ERR). The plan focuses on safe and responsible drilling, ensuring all regulatory requirements are met. Drilling is targeted for mid-2025, with the aim of proving commercial gas production.

Overview and future outlook for Lakes Blue Energy's Wombat-5 project

Lakes Blue Energy NL has made significant progress by submitting the Operation Plan for the Wombat-5 well to the Victorian regulator. This move marks a crucial step in their strategy to tap into significant contingent gas resources in the Wombat Gas Field. The company plans to drill the well by mid-2025, with the potential to produce gas at an initial rate of around 10 TJ/d. The strategic location of the field near existing infrastructure is expected to facilitate quick and cost-effective activation. If successful, Lakes Blue Energy aims to supply approximately 20 PJ/a, accounting for 10% of Victoria's gas demand. The project is economically attractive due to its onshore location and proximity to existing pipelines. In the long-term, the company plans an integrated development for both the Wombat and Trifon/Gangell Gas Fields, focusing initially on the Wombat Gas Field, with plans to develop the Trifon/Gangell Gas Field to ensure steady production over the next 20 years.

Executive insights on the Wombat-5 well development

CEO Roland Sleeman highlighted the submission of the Operation Plan as a significant milestone, acknowledging the efforts of COO Tim O'Brien.