• Drilling operations ongoing at Wombat-5 well, side-track-1 (ST-1)
• Mud circulation issues identified, independent investigation underway
• Drill string recovered, cement plug set, rig being stress tested

Lakes Blue Energy has provided an update on the drilling operations at the Wombat-5 well, side-track-1 (ST-1), in the Gippsland Basin, Victoria. As of 8:00 am AEST today, the well has been drilled to a depth of 470 mRT (measured depth), with no progress in the last 24 hours. The company has arranged an independent investigation into the mud circulation issues that have been encountered, with the draft findings expected to be received today. The free section of the drill-string has been successfully recovered from the hole, and a cement plug has been set back from a depth of 896 mRT to approximately 470 mRT, with good cement returns indicating the hole is still in good condition. After further mud circulation failures on Saturday, a remedy for the issue with the mud circulation system appears to have been identified, and the system is currently being stress tested, with no further issues arising so far. Once the stress testing has been completed and the necessary replacement equipment for the bottomhole assembly has arrived on site, the 8-1/2' directional assembly will be in a position to run in hole to kick off and drill ahead to the 7' casing point. Any decision to recommence drilling is subject to the company reviewing its independent expert's report and the contractor's final investigation report, and concluding that both the rig is fit for purpose and the contractor's assurances regarding suitability of the mud circulating system are sufficient.