Lakes Blue Energy (ASX:LKO) has dropped the latest on its Wombat-5 Well (side-track two) in the Gippsland Basin, and while it’s been a bit of a slow burn for the company, things are now looking more back on track.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
As of 8am AEST today, the well was sitting at 1,259 metres measured depth (MD), with 28 days on the clock since spud. The crew hit a bit of a hiccup yesterday, with no progress in the past 24 hours, but it turns out the culprit wasn’t the drill bit as first suspected. The issue? A failed downhole mud motor.
No dramas though, the busted motor’s been swapped out, and the contractor is now running back into the 8-1/2” hole to press on toward the 7” casing point. The team’s aiming to punch through to the target formation, the Strzelecki Formation, sitting just a bit deeper at 1,360mRT (true vertical depth).
Currently, they’re drilling through the Latrobe Group, a well-known producer in the region. The last casing, 9-5/8”, was set at 302.4mRT, and with safety always a priority, it’s good to note there’ve been zero lost-time injuries (LTIs) so far.
The company’s board is upbeat. “These things happen in drilling… It’s just part of the game,” a company rep wrote. “Identifying the mud-motor issue early and sorting it quickly has helped keep things moving. We’re looking forward to reaching target depth shortly and getting a better look at what’s down there.”
The Wombat-5 Well is a key part of the company’s VIC gas plans; solid results could be a real gamechanger, especially with supply under the microscope on the east coast.
LKO has been up +6.3% at $3 in afternoon trade.
Join the discussion: See what HotCopper users are saying about Lakes Blue Energy NL and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please clickhere.