More Oil Flows In Wombat 3Lakes Oil N.L. (LKO) advises that the...

More Oil Flows In Wombat 3
Lakes Oil N.L. (LKO) advises that the current re-evaluation of its Wombat 3 well
is proceeding as planned with Strzelecki oil being recovered from existing
perforations in the casing at a depth of 2,106 metres. The oil is flowing from a
natural fracture that was previously hydraulically fracture stimulated. Oil is now
continuing to flow freely into the well bore along with gas and fracing fluid.
The oil flow emerged after the removal of some 50m of fracing sand which was
blocking recovery of gas or fluids from the perforations.
Lakes Oil N.L. will continue to allow the well to clean up in order to better assess
the oil flow. The flow rate cannot be accurately measured at this time, however,
over the next few days evaluation will take place using downhole measuring
equipment.
Our technical team is now considering whether to re-fracture this zone and thus
increase the size of the fracture or to bring in a workover rig to properly evaluate
the oil flow rate.
Lakes Oil N.L. considers this to be highly significant as it is the first nonbiodegraded
oil flow recorded anywhere in the onshore or offshore
Gippsland Basin emanating from the Strzelecki Group (Bass Strait oil flows
from the Latrobe Group).
Oil previously recorded from this zone in the well was analysed at 39° API
gravity, similar to offshore oil recovered in the Latrobe Group. This oil
appears to be the same and will be sent for analysis.