Located in the PEP157 permit onshore Victoria, the tests showed gas was present throughout the sections drilled and the well is currently being completed and suspended, pending full evaluation of the results for a potential development.

This is the sixth and final DST of Wombat-1 and follows two open hole, DST#1A and DST#2, and three cased hole DSTs. These tests gave various results of between: 25,000 cubic feet of gas per day from the Golden Beach sands; 250,000 cubic feet of gas per day from the Strzelecki/Golden Beach Formation; and 100,000 cubic feet of gas per day on a ¼ inch choke from the Golden Beach.

Preliminary analysis of the test data indicates that the gas flow was retarded by skin damage and the influx of a small volume of water.

While the flows are fairly modest the well wasn’t drilled with a view to prevent formation damage, and the company will be hoping a correctly engineered, underbalanced approach would reduce formation damage, with fraccing an option to increase flow rates.

The Wombat-1 well is the first well on the Wombat structure and is only 4 km from the Esso-BHP gas pipeline and 15km from the Longford gas plant.

The Wombat Block is located in PEP 157. Lakes Oil has retained a 92.5% interest in the Wombat Block subject to a 5% overriding royalty held by Roma Petroleum N.L.