Lakes Blue Energy NL (ASX:LKO) has successfully secured firm commitments for a $6.5 million placement, designed to fully fund the drilling and testing of the Wombat-5 appraisal well in Petroleum Retention Lease 2 (PRL 2) and provide working capital until June 2026. The placement involves issuing 8,663,667 new shares at $0.75 each, representing a 25% discount to the last traded price prior to the company’s suspension.
The placement is structured in two tranches: the first tranche, worth approximately $6.0 million, will utilize the company’s existing ASX Listing Rule 7.1 placement capacity, with shares expected to be issued promptly after the company’s reinstatement to trading. The second tranche, for approximately $0.5 million, is subject to shareholder approval at a General Meeting scheduled around July 22, 2025. Directors also intend to participate in the placement, converting outstanding director fees into equity, pending shareholder approval.
Morgans Financial Limited acted as the Lead Manager. Upon completion of the placement, Lakes Blue Energy anticipates a pro forma cash balance of around $9.4 million. According to Chairman Roland Sleeman, the company is eager to utilize the funds to drill Wombat-5, with the goal of developing a substantial gas field to help alleviate Victoria’s anticipated gas shortages.
Lakes Blue Energy’s strategy hinges on the Wombat Gas Field’s potential to deliver a timely and cost-effective solution to Victoria’s gas supply issues. The company intends to drill the Wombat-5 well, targeting the upper, more permeable section of the gas-saturated Strzelecki Formation. Independently verified gas flow rate potential for the Wombat-5 well is approximately 10 terajoules per day.
