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Highlights

  • NPM surged 23% to 1.6 cents per share in early trade on 18 June

  • Investor excitement driven by updates from Lakes Blue Energy, in which NewPeak holds a 16.3% stake

  • LKO secures $6.5M fully underwritten placement and government drilling consent for high-potential Wombat-5 well

  • Planned spudding date: week of 21 July 2025

  • Target gas flow rates up to 10TJ/day from the lateral well

Shares in NewPeak Metals Limited (ASX:NPM) jumped sharply by 23% on Tuesday morning following positive developments announced by its strategic investment in Lakes Blue Energy (ASX:LKO). As Lakes' largest shareholder with a 16.3% stake, NewPeak stands to benefit significantly from the progress at the Wombat-5 gas well project in the Gippsland Basin, Victoria.

The market reaction came after Lakes revealed it had secured ministerial consent to drill Wombat-5 and had successfully raised capital through a fully underwritten institutional placement.

AU$6.5M Capital Injection and Relisting on ASX Imminent

Lakes announced a $6.5 million institutional placement, pricing new shares at $0.75 each. The capital raising is divided into two tranches:

  • Tranche one (~$6.0 million) will be issued using the company's existing placement capacity

  • Tranche two (~$0.5 million) remains subject to shareholder approval

The placement provides Lakes with sufficient capital to fund the Wombat-5 well, which carries an estimated drilling cost of $7.5 million. ASX reinstatement of LKO shares is expected by 24 June 2025.

Drilling Consent and Rig Secured for High-Potential Wombat-5 Well

On 16 June, Lakes confirmed it had received drilling consent from the Victorian Minister for Energy and Resources, contingent on the finalisation of rehabilitation bonds. The company has entered into a drill rig supply agreement with Condor Energy Services Limited, with drilling set to begin mid-July 2025, and spudding targeted for the week of 21 July.

Wombat-5 will be a 1.5km lateral appraisal well within Petroleum Retention Lease 2 (PRL2). It targets the upper Strzelecki Formation, with previous wells in the field yielding flows between 100,000 to 3 million cubic feet per day (cfd). Independent assessments now suggest the lateral section could achieve up to 10 million cfd (~10 TJ/day).

Strategic Importance of the Wombat Gas Field

The Wombat field, part of PRL2, holds a certified 2C contingent gas resource of 329 PJs, with a broader combined resource across Wombat, Trifon, and Gangell fields totaling 719 PJs.

Investor Implications for NewPeak Metals

Given its 16.3% holding in Lakes, NewPeak Metals is well-positioned to benefit from any value uplift associated with the Wombat-5 drilling success.