The well in PEP 157, onshore Gippsland, Victoria, was shut in for three weeks after an eight-day flow test. The gauges were removed and the data downloaded to determine pressure build-up.

Meanwhile Wombat-1 was re-entered last week and the production string cut off to allow the perforations to be assessed.

Gas/water/condensate flowed to the surface at significant but unmeasured rates during the re-entering, the company said. Lakes plans to cement off the lower perforations to allow gas to flow to surface without the water that appears to be coming from the bottom perforations.

If the work is successful the well will be connected to a separator to assess commercial production potential.

At Wombat-3, the well has been hydraulically fractured at 2,106 metres and had flowed back with gas/frac fluid and oil traces at the surface, according to Lakes.

Tests showed perforations at this depth are covered by proppant, requiring nitrogen to be pumped into the hole to help lift the proppant and to allow gas to flow to the surface.

Lakes plans to fracc the well again later this week, at 1,900m.