- Production testing progressing
- Pressure build-up data supporting presence of a gas-charged reservoir
- Three gas-bearing zones confirmed
- Minimum of 237m of high-quality gas-bearing sands identified
Lakes Blue Energy (ASX: LKO) has achieved promising early success in production testing operations in the onshore Wombat-5 gas well in Victoria.
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Testing has confirmed the three strong gas zones within a 1,500m horizontal section across a broad package of gas saturated sands identified in earlier drilling.
Gas shows ranging from C1 (methane) through to C5 (pentane) were observed throughout these intervals, confirming the presence of a gas-charged system.
Production testing continues to progress, with the well currently in the pressure build-up phase following earlier clean-up and initial flowback operations.
The pressure build-up phase has continued with readings in increasing to 1,764 psi.
Chair, Roland Sleeman, said Lake’s technical team is encouraged by this outcome, with pressure analysis indicating both pressure contribution from the open hole section beyond the end of the cased hole section and a high formation skin from the drilling activities.
The company has now identified a minimum of 237n of gas-bearing sands, with inferred porosity and high gas shows from C1 (methane) through to C5 (pentane), located behind casing.
“These results further support the presence of a gas-charged system, with the upcoming perforation and testing program designed to improve connectivity to these intervals,” Mr Sleeman told shareholders.
Subject to regulatory approval, the company intends to undertake a range of activities as part of the next phase of testing including reservoir compatible completion fluid placement, a propellant enhanced perforation (PEP) program, flow testing and potential stimulation.
Lakes is targeting commencement of these activities in late August 2026, which will represent the next key phase of testing and is expected to provide further clarity on flow performance.
If Lakes is successful in achieving commercial flows, the well has the potential to add new gas production to Victoria’s energy system.
LKO is up 3.80% to 41.0¢. Mkt cap $29.00M.
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