• Drilling at Wombat 5 encountered three strong gas zones
• Additional operations required to establish full gas flow from the wellbore
• Extended pressure build-up program underway to evaluate reservoir properties
• Perforation program planned to improve gas flow into the wellbore

Lakes Blue Energy NL (ASX:LKO) provides an update on ongoing production testing operations at the Wombat-5 gas well. Drilling at Wombat 5 encountered three strong gas zones within a 1,500 meter horizontal section across a broad package of gas saturated sands. Since the previous announcement on 9 February 2026, operations have focused on unloading drilling fluid from the well using nitrogen lifting and undertaking gas in-flow pressure build up diagnostic testing. The Company has concluded that additional operations will be required to establish full gas flow from the wellbore. The Company has now suspended well flow and clean-up activities at the Wombat 5 site and completed demobilisation of contractor equipment. The extended pressure build-up phase of the approved well test program has now commenced concurrently with regulatory approval, and this work is expected to provide longer-term pressure buildup data to assist in evaluating reservoir properties. Following completion of the extended pressure build-up program, and subject to regulatory approval, the Company intends to return to the well and implement a perforation program in the completed horizontal reservoir interval. The objective of the perforation program is to improve gas flow into the wellbore. Perforation is a conventional enhancement technique in wells of this nature. The perforation program may be complemented by other enhancement activities, including acid washing aimed at further improving the well's flow performance. While additional remediation work is required, the testing undertaken to date has provided valuable reservoir and well performance information. The Company continues to assess the Wombat Field as prospective for commercial gas production and will update the market as further results become available.

The Company continues to assess the Wombat Field as prospective for commercial gas production and will update the market as further results become available.