• Completion of sale of 49% interest in Petroleum Exploration Permit 169
• Total sale proceeds of $6.5 million received
• Lakes to receive ongoing royalty of ~4% of wellhead value from future production

Lakes Blue Energy N.L. (ASX:LKO) has received the final $3.5 million payment for the sale of its 49% interest in Petroleum Exploration Permit 169 (PEP 169) in Victoria, Australia. The sale transaction was completed on 9 October 2024, following the satisfaction of all preconditions by 4 October 2024. The total sale proceeds received by Lakes now amount to $6.5 million. In addition to the sale proceeds, Lakes will also receive an ongoing royalty of approximately 4% of the wellhead value of any petroleum produced from within PEP 169. The majority of the sale proceeds will be used by Lakes to commercialize its 100% owned Wombat and Trifon/Gangell fields in PRL 2 in the Gippsland Basin, where Contingent Resources totaling 719 billion cubic feet of gas have been independently certified. Lakes is currently advancing plans for the drilling of the Wombat-5 well, including negotiating with drilling rig operators and responding to the State Government's request for further information on the Wombat-5 Operation Plan.

Lakes is now fully focused on drilling the Wombat-5 well in PRL2, while the royalty arrangement from the PEP 169 sale provides meaningful upside from any petroleum production in the permit area without any exposure to exploration, development, or production costs.