• Drilling of 6-1/8' horizontal, production hole section commenced
• Increased natural gas readings up to 81 units, or 16,200 ppm
• Targeting 250 BCF of gas at Wombat field for commercial production

Lakes Blue Energy has provided an update on the drilling operations at the Wombat-5 well, side-track-2 (ST-2), in the Gippsland Basin, Victoria. As of 9:30 am AEST on September 10, 2025, the well has reached a depth of 1,612 meters measured depth (mRT) and 1,393 meters true vertical depth (TVD), with a horizontal length of 60 meters. The contractor commenced drilling the 6-1/8' horizontal, production hole section at 6:15 am this morning after drilling out the 7' casing shoe. By 9:30 am, a total of 60 meters had been drilled at a rate of approximately 20 meters per hour, with further increases in natural gas readings recorded as the new cuttings came to the surface. Readings up to 81 units, or 16,200 ppm, comprising methane, ethane, propane, butane and pentane (also known as C1 to C5 gas shows) were recorded. Lakes Blue Energy anticipates further increases in the intensity of natural gas shows as the proposed 1,500-meter horizontal well continues to drill towards the target overall drilling depth of 3,050 mRT MD. The company's Chairman, Roland Sleeman, commented that the gas shows in the Strzelecki formation are highly encouraging and that they look forward to completing the 1,500-meter lateral well to access the 250 BCF of gas at the Wombat field and target commercial production.

Lakes Blue Energy is targeting 250 BCF of gas at the Wombat field for commercial production as it continues to drill the 1,500-meter horizontal well.