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Lakes Blue Energy NL (ASX:LKO)

ALERT: Price-sensitive ASX Announcement for LKO
Current share price for LKO : $0.450 -0.515 (-53.37%)+
Announcement
Release
19 Mar 2026 8:34AM
Price at Release
$0.965
Full Release
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Summary
Lakes Blue Energy NL (ASX:LKO) provided an update on the production testing of the Wombat-5 gas well, which encountered three significant gas zones. The company's efforts have focused on removing drilling fluids through nitrogen lifting and conducting diagnostic testing of gas inflow pressure. However, further operations are needed to establish a steady gas flow. The company has paused well flow activities and demobilized equipment, while an extended pressure build-up phase is underway to evaluate reservoir properties. Subject to regulatory approval, Lakes Blue Energy plans to implement a perforation program to enhance gas flow, with technical preparations and regulatory discussions in progress. Despite requiring additional work, the Wombat Field remains a candidate for commercial gas production.
Key Points
  • Lakes Blue Energy NL (ASX:LKO) is conducting production testing at the Wombat-5 gas well.
  • Wombat-5 encountered three strong gas zones within a 1,500 meter horizontal section.
  • Operations focused on unloading drilling fluid using nitrogen lifting and conducting gas inflow pressure build-up testing.
  • Additional operations are needed to establish full gas flow from the wellbore.
  • The company has suspended well flow and cleanup activities and has demobilized contractor equipment.
  • An extended pressure build-up phase has started, expected to provide long-term pressure buildup data.
  • A perforation program is planned to improve gas flow into the wellbore, subject to regulatory approval.
  • Technical design work and discussions with regulators for the next phase of operations are underway.
  • The Wombat Field is still considered prospective for commercial gas production.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.