Highlights

  • Lakes Blue obtained regulatory approvals for the next stage of Wombat well stimulation and flow testing.
  • The company indicated on-site work was expected to begin in mid-November 2026.
  • Portland exploration drilling remained targeted for the first half of 2027, subject to approvals.
  • An updated Nangwarry carbon dioxide feasibility study supported further commercial evaluation.

With the next Wombat test programme approaching, Lakes Blue Energy NL (ASX:LKO) is concentrating on obtaining more detailed production information from its Victorian gas asset. The company’s September quarter work also covered preparations for drilling at Portland and further assessment of the Nangwarry carbon dioxide opportunity. These projects sit at different development stages, and the outcome of future testing will determine subsequent technical decisions.

Wombat Advances to a New Testing Phase

Wombat is Lakes Blue’s flagship onshore gas field in Victoria. Following drilling and initial assessment work, the company outlined a staged programme involving pressure analysis, perforation, stimulation and flow testing. The September quarterly update indicated that regulatory approvals for the proposed perforation, stimulation and testing work were in place. Contractors were expected to commence the next on-site programme in mid-November 2026. The upcoming work is designed to gather information on gas deliverability and well performance; regulatory consent to conduct a test does not demonstrate commercial production.

Several Gas-Bearing Intervals Under Assessment

Lakes Blue reported gas shows during drilling across all three principal gas sand packages. The observation provides information about the presence of gas in the subsurface intervals, but it is separate from establishing sustainable flow rates or commercial reserves. The planned work is therefore important to the next stage of technical assessment. Results from well intervention and the proposed tests will inform further reservoir modelling and the company’s evaluation of potential development options. Any eventual gas development would depend on additional engineering, commercial and funding considerations.

Portland Targeted for a Future Exploration Well

Alongside Wombat, the company is progressing its Portland Energy Project. Management has described a prospective drilling window in the first half of calendar 2027, subject to regulatory approvals. This programme is separate from the near-term testing at Wombat and carries its own exploration and scheduling requirements. An intended well date is not an announcement of spudding, and the presence of mapped targets does not establish recoverable gas. The company continues to advance the project within a broader portfolio of Australian energy assets.

Nangwarry Adds a Carbon Dioxide Opportunity

Lakes Blue also continued evaluating the Nangwarry carbon dioxide project in South Australia. A revised feasibility assessment supports consideration of a potential commercial operation, but the company has not presented the project as an operating facility. Development decisions would require further technical, commercial and financing work. At the end of September, the company reported approximately AUD 4.16 million in cash. Its near-term Capital priorities therefore span testing at Wombat and the appraisal or evaluation requirements of other projects.

Outlook: The Next Milestones

The key near-term event is the planned Wombat testing programme, followed by interpretation of results and ongoing preparation for Portland and Nangwarry.

Lakes Blue Energy NL shares traded at AUD 0.285 on 6 November 2026, up 1.79%; intraday high AUD 0.305, low AUD 0.285, Volume 6,329 shares and Market Capitalisation approximately AUD 27.29 million.