Lakes Blue Energy sale agreement announcement

Lakes Blue Energy NL (Lakes, ASX:LKO) has successfully executed an Asset Sale and Purchase Agreement (ASPA) for the sale of its 49% interest in Victorian Petroleum Exploration Permit 169 (PEP 169). The agreement includes a $3.0 million cash payment upon completion, with an additional $3.5 million receivable upon the transfer of ownership of PEP 169. This sale will prioritize funding for the commercialization of the Wombat and Trifon/Gangell gasfields in Gippsland, with plans to accelerate work on the Wombat project.

Executive Commentary on Sale Agreement and Commercialisation Plans

The Asset Sale and Purchase Agreement marks a significant milestone for Lakes Blue Energy, providing the necessary funding to expedite the commercialization of the Wombat project. The sale of the 49% interest in PEP 169 will enable us to focus on securing approval for drilling the Wombat-5 well, with plans for drilling targeted in the second quarter of 2025. This aligns with our strategic goal of advancing the development of the Wombat and Trifon/Gangell gasfields, aiming to contribute to Victorian gas demand over the next two decades.

Summary of Lakes Blue Energy's Sale Agreement and Future Plans

Lakes Blue Energy (ASX:LKO) has successfully executed an Asset Sale and Purchase Agreement for the sale of its 49% interest in Victorian Petroleum Exploration Permit 169, paving the way for the commercialization of the Wombat project. The agreement includes a $3.0 million cash payment upon completion, with an additional $3.5 million receivable upon the transfer of ownership of PEP 169. The proceeds from this sale will be prioritized for the commercialization of the Wombat and Trifon/Gangell gasfields in Gippsland, with plans to accelerate work on the Wombat project, including securing approval for drilling the Wombat-5 well targeted for the second quarter of 2025. Lakes Blue Energy aims to contribute to Victorian gas demand over the next two decades through the development of these gasfields.