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Lakes Blue Energy (ASX:LKO) has this week started drilling at its Wombat-5 conventional gas well in the Gippsland Basin – a well-timed campaign commencement considering Victoria’s rapidly growing energy demands.
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The Wombat-5 well was spudded at 6am early on Friday morning, the company confirmed in a market release, after a rig was set up through site works.
Lakes Blue plans to drill Wombat-5 horizontally to a total depth of 3,050 metres (1,420 true vertical) as it targets gas-bearing zones in the Strzelecki Formation. Confirming reservoir deliverability is a key target for the explorer.
“Spudding Wombat-5 is a major step toward unlocking a significant and strategically located gas resource,” Lakes’ chairperson, Roland Sleeman, said.
He continued: “With a large resource, established infrastructure close by, and rising demand for domestic supply, we see a real opportunity for Wombat to become a meaningful contributor to Victoria’s energy mix.”
Drilling will take around four weeks, Lakes projects. The Wombat-5 rig will then be demobilised from the site, and the surface well test package and coiled tubing unit will be brought in to conduct product tests around the well.
“We’re excited to get underway,” the company’s chief declared.
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Once everything is established, Lakes then expects the “productive” Strzelecki Formation to deliver as much as 10 Terajoules of conventional gas every day – an endgame goal the explorer had independently assessed just recently.
The news didn’t help LKO‘s price, though; shares are at $1.17 mid-arvo.
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