• Firm commitments received to raise $6.5 million
• Funds will be used to drill Wombat 5 well and provide working capital
• Post placement, company will have pro forma cash balance of ~$9.4 million

Lakes Blue Energy NL (ASX:LKO) has received firm commitments to raise $6,497,750.25 through a placement of 8,663,667 shares. The placement will be conducted in two tranches, with the first tranche of $5,995,250.25 for 7,993,667 shares to be issued under the company's existing placement capacity, and the second tranche of $502,500 for 670,000 shares to be issued subject to shareholder approval. The new shares will be issued at $0.75 per share, representing a 25% discount to the last traded price. The funds raised will be used to advance the company's Wombat Project, including the drilling and testing of the Wombat 5 appraisal well in Petroleum Retention Lease 2 (PRL 2), as well as provide sufficient working capital until June 2026. The company's Wombat Gas Field is located onshore in the Gippsland Basin, close to existing gas infrastructure and markets. An independent report has forecast an initial production potential of approximately 10 terajoules per day from the Wombat 5 well. With the placement, Lakes Blue Energy will be well-funded to finalise the Wombat 5 drilling and testing program and progress its other projects, including the Nangwarry CO2 Project in South Australia and the ATP 1183 project in Queensland.

The company expects to deliver approximately 10% of Victoria's conventional gas supply for the foreseeable future from its Wombat Gas Field.

Lakes Blue Energy is strategically positioned to capitalize on the looming east coast gas supply shortfalls, with its onshore Wombat Gas Field offering a near-term, cost-effective domestic supply solution to address the region's energy crisis.