• Wombat-5 well encountered three significant gas-saturated sand intervals
• Gas concentrations and reservoir quality were high, correlating with historic wells
• Completion design minimizes potential formation damage to maximize gas production

The Board of Lakes Blue Energy is pleased to provide a summary of the drilling outcomes at the Wombat-5 appraisal well in the Gippsland Basin, Victoria. The well encountered three significant sand intervals with good porosity and very high gas content. Gas concentrations measured while drilling were high, with the peaks representing the zones of high gas content coinciding with good quality reservoir sands. The first and third high gas intervals were located in close proximity to the historic Wombat-2 and Wombat-3 vertical wells, correlating to sand packages previously identified in those wells, which both flowed gas. The second (middle) high gas interval is a new discovery, confirming Lakes' view that the Strzelecki Formation is gas saturated with multiple sand zones that could contribute to achieving commercial gas flows. The 4-1/2' swellable packer completion, completed to 2,438 mRT, was utilised to fully case the well without the need for cementing, reducing potential formation damage and ensuring all of the gas sands can produce into the wellbore. While a lost Bottom Hole Assembly and a suspected fault zone prevented the completion from reaching total depth, Lakes anticipates the lower gas interval should still contribute to overall gas production. The company is finalizing arrangements for the commencement of production testing activities on 10 November and envisages that, provided production testing is successful, a resource re-evaluation and project feasibility study will commence in December.

Lakes anticipates the lower gas interval should contribute to overall gas production provided gas flows past the stuck BHA past or through the corridor opened up by drilling mud returns. The company is finalizing arrangements for the commencement of production testing activities on 10 November and envisages that, provided production testing is successful, a resource re-evaluation and project feasibility study will commence in December.