• All approvals now received to commence drilling of the conventional Wombat-5 well
• Rig #1 on schedule for mid-July mobilisation, with drilling to commence on 31 July 2025
• Wombat-5 designed to test gas production from upper Strzelecki Formation, with potential of up to 10 TJ/day

Lakes Blue Energy NL (ASX: LKO) has announced that it has now satisfied all conditions attached to the Victorian Minister for Energy and Resources' consent for drilling of the Wombat-5 well in Gippsland, Victoria. The company has lodged a bank guarantee to cover the rehabilitation bond for the well, which was set at $898,500 by the Victorian Department of Energy, Environment and Climate Action (DEECA). With the bank guarantee in place, all regulatory conditions for drilling have been met, and there are no remaining obstacles to the commencement of the well. The company is also pleased to confirm that Rig #1, contracted from Condor Energy Services, remains on track for mobilisation to the Wombat-5 drill site in mid-July. Drilling is expected to commence on 31 July 2025. In preparation for rig mobilisation, the company commenced site works a week ago, which are now nearing completion. The Wombat-5 well is of conventional, lateral design, with a targeted 1.5 kilometres of near-horizontal production hole passing through the upper Strzelecki Formation. The well has an independently verified gas production potential of 10 Terajoules per day. Prior exploration through the company's existing Wombat gas wells has confirmed the presence of high-quality natural gas in the upper Strzelecki Formation. Development of the Wombat Gas Field is expected to be facilitated given the field's close proximity to existing third-party owned gas infrastructure, particularly gas pipelines supplying the Melbourne market. The Wombat Gas Field contains an independently certified contingent ('2C') gas resource of 329 Petajoules (PJ). The adjacent Trifon-Gangell Gas Field holds a further 390 PJ (2C), bringing the combined contingent resource across the fields to 719 Petajoules. Subject to successful drilling, the company believes these fields have the potential to deliver near-term supply into the east coast gas network, significantly easing impending Victorian gas shortages as forecast shortfalls emerge from 2026.

The company aims to coordinate development of two gasfields (combined resource of 719 PJ) to supply gas into Victoria at a rate of around 20 PJ per annum for 20 years.

Successful drilling at Wombat-5 has the potential to be transformational for Lakes and support near-term supply into the Victorian gas market.