Key Highlights

  • Lakes Blue Energy scheduled a three-week Wombat-5 workover programme for November 2026, with specialist equipment arriving in Australia ahead of operations.
  • The programme includes well recompletion, additional perforation activities and extended flow testing to assess the well's production potential.
  • Wombat's development scenario targets first gas in early 2029, with modelled peak production of up to 55 terajoules per day.
  • The company outlined an approximately AUD 8.7 million Capital raising in July 2026 to support its operational and funding requirements.

Lakes Blue Energy NL (ASX:LKO) is an Australian onshore Natural Gas exploration company focused on developing gas resources across Victoria and South Australia. Its principal asset is the Wombat gas field in the onshore Gippsland Basin, where it holds a 100% working interest. Recent operational developments have centred on preparing the Wombat-5 well for further testing, with the November 2026 workover expected to provide additional information about the field's production potential and future development requirements.

Wombat-5 Workover and November Testing Programme

Lakes Blue Energy advanced preparations for its Wombat-5 workover during October and early November 2026.

On 5 November 2026, the company reported that specialist equipment required for the programme had arrived in Australia, with crews scheduled to commence site activities on 9 November.

The planned workover is expected to take approximately three weeks and involves several technical stages designed to improve the well's configuration and assess gas flow.

The programme includes reconfiguring the existing completion, perforating selected reservoir intervals and conducting extended production testing.

The perforation programme is expected to incorporate propellant-enhanced techniques intended to improve communication between the wellbore and targeted reservoir formations.

In October 2026, the company received regulatory consent covering the proposed testing activities, following acceptance of a variation to its operating plan.

The results will provide further information about reservoir deliverability and help determine whether additional development planning is warranted.

Wombat Gas Resources and Development Outlook

The Wombat gas field is located within Petroleum Retention Licence 2 in Victoria's onshore Gippsland Basin.

Between January and May 2026, Lakes Blue Energy conducted production testing across three principal gas-bearing reservoir intervals at Wombat-5.

During the March quarter, gas reached the surface during nitrogen-assisted well clean-up operations. The well was subsequently suspended pending additional testing and remediation activities.

The company's June 2026 Quarterly Report outlined contingent gas resources of approximately 258 billion cubic feet under the low estimate, 329 billion cubic feet under the best estimate and 628 billion cubic feet under the high estimate.

These estimates represent potentially recoverable resources associated with discovered accumulations but are not classified as commercially recoverable reserves.

A commercial development scenario released in July 2026 outlined potential first gas production in the first quarter of 2029.

The model included peak output of up to 55 terajoules per day, an estimated production life of approximately 17 years and initial development Capital Expenditure of around AUD 169 million.

These projections remain conditional on technical performance, commercial arrangements, financing and regulatory approvals.

Capital Raising and Financial Position

Lakes Blue Energy's June 2026 quarterly report recorded cash holdings of approximately AUD 0.50 million at 30 June 2026.

Net operating cash outflows totalled approximately AUD 3.45 million for the June quarter, reflecting expenditure associated with the company's exploration and development activities.

On 29 July 2026, Lakes Blue Energy announced a proposed capital raising of approximately AUD 8.7 million.

The funding package comprised a Placement of approximately AUD 4.0 million and an entitlement offer targeting around AUD 4.69 million.

The capital raising was intended to provide additional financial capacity for the company's operational programme.

Further development of Wombat would require substantially greater Investment than the expenditure associated with the current testing programme.

Accordingly, project financing, potential commercial partnerships and future funding arrangements remain important considerations.

Additional Projects and Upcoming Milestones

Beyond Wombat, Lakes Blue Energy maintains interests in the Portland Energy Project in Victoria's onshore Otway Basin and the Nangwarry carbon dioxide prospect in South Australia.

The company has identified a potential Portland drilling campaign during the first half of 2027, subject to necessary approvals, equipment availability and operational planning.

Its immediate priority remains completion of the Wombat-5 workover and assessment of the resulting gas flow data.

The outcome will influence future technical evaluations, potential development scheduling and funding requirements.

Operational challenges include reservoir performance, well integrity, equipment availability and the cost of further testing.

Updates on the company's cash position, project financing and progress across its exploration portfolio will provide additional context for its development plans.