Highlights

· Multi-zone gas presence confirmed across all three principal gas sand packages at the Wombat-5 well.

· A propellant-enhanced perforation program at Wombat-5 is scheduled to commence in September 2026, subject to regulatory approval.

· The Wombat field carries contingent resources estimated at a best case of 329 billion cubic feet within PRL 2.

· A drilling campaign at the Portland Energy Project in the Otway Basin is targeted for the first half of 2027.

Lakes Blue Energy (ASX:LKO) has continued to advance the appraisal of its onshore Victorian gas assets, with the Wombat-5 well progressing through flow testing and a further stimulation program scheduled for September 2026.

The company holds gas exploration interests across the Gippsland and Otway basins, and is building toward two significant operational tests in the near term.

Wombat-5 Well Advances Through Testing Phases

The Wombat-5 well in the Gippsland Basin has progressed through initial flow, clean-up, fluid recovery and pressure build-up analysis, with gas observed reaching surface via the flare stack during nitrogen-assisted clean-up operations in the March 2026 quarter.

Management confirmed multi-zone gas presence across all three principal gas sand packages. The well has been suspended with a wireline bridge plug set at 1,100 metres, pending the next phase of operations.

Perforation Program Targets Improved Reservoir Connectivity

Lakes Blue Energy has scheduled a propellant-enhanced perforation program at Wombat-5 to commence in September 2026, subject to regulatory approval. The program is aimed at improving reservoir-to-wellbore connectivity ahead of further stimulation and flow testing.

The Wombat field carries contingent resources estimated at a best case of 329 billion cubic feet within PRL 2, providing context for the significance of confirming commercial flow rates from the gas sand packages.

Portland Energy Project Targets 2027 Drilling

Alongside the Wombat program, Lakes Blue Energy continues to advance its Portland Energy Project in the Otway Basin toward a drilling campaign targeted for the first half of 2027.

The Portland acreage, spanning permits PEP 167 and PEP 175, carries substantial prospective resources across the unconventional Eumeralla Formation and the conventional Waarre Sandstone, offering both near-term appraisal targets and longer-dated exploration optionality.

What Could Come Next for Lakes Blue Energy (ASX:LKO)?

The most immediate catalyst is the September 2026 perforation and flow-testing program at Wombat-5, which should provide clearer data on whether the field's gas sands can deliver commercially meaningful flow rates.

Investors may also monitor the Portland drilling campaign timeline, regulatory progress in Victoria, and the broader east-coast gas Supply backdrop, which has kept policy focus on new domestic gas sources.

Disclaimer: This article is for general information purposes only and does not constitute financial advice, an offer or recommendation to buy or sell any security. Investors should conduct their own research and consider their personal circumstances before making Investment decisions.