Lakes Oil to Drill New Gas Well in Gippsland Basin

Lakes Oil plans to drill a new well, Wombat 5, in Victoria’s Gippsland Basin.

The well will be drilled conventionally, without hydraulic fracturing. The decision to drill was inspired after company’s geology team carefully studied conventional discoveries both in Australia and overseas in recent times.

The company believes that it can achieve commercial gas production using traditional methods to recover gas from the ‘weathered’  zone  at the top of the Strzelecki Formation, proved to be present over a wide area in Gippsland, it said in a statement.

“If successful, Wombat 5 will not only commercialise the entire Wombat structure, but potentially the Macalister, Trifon and Gangell fields as well. This could deliver a significant amount of gas at a time of rising prices and projected shortages, “the company said.

Lakes' intends to restrict the sale of this gas, which will be produced at lower cost than offshore gas, to Victorian and New South Wales customers.

On November 3, Lakes Oil signed a memorandum of understanding with Sinopec to investigate a possible joint development of Lakes’ permits in the Gippsland Basin, Victoria. 

Sign-up for our free weekly newsletter update via email here