"Current testing at Wombat-2 calls for increasing choke sizes to learn more about the deliverability of this reservoir unit within our multi unit stratigraphy. We anticipate that the rate will stabilise at approximately 650,000 cubic feet per day in line with our two previous tests,” said a Lakes drilling report.

It said this important data would be fed into the current pre-feasibility study being carried out in the USA by Halliburton unit, Landmark Consulting and Services.

Meanwhile, the company this morning called a trading halt of up to 48 hours for a share issue by placement.

The company is aiming to raise $2.64 million for fraccing programs at Wombat-3 and Trifon-2, as well as studies and other work in its onshore Gippsland blocks.

According to Lakes, Halliburton experts would arrive at the Wombat-3 wellsite at the end of May to begin fracture stimulation of three zones in the well. Several barrels of oil were recovered from 2,106 metres and this would be further tested.

Trifon-2 had been successfully prepared for further fracture stimulation and it was envisaged that one fracture will be put in place to evaluate reservoir performance, according to Lakes. This fracture is to be located in the fourth sand unit at a depth of about 1,850 metres. Lakes said the zone was one of five major sand units in the well.

Its two wildcat wells, Patrobus-1 and Banjo-1 in PEP 157, would be drilled in the next few weeks, starting with Patrobus-1. The well is located at Marlo and will be followed by the drilling of Banjo-1 well located to the south east of Orbost.