Lakes Blue Energy (LKO), an ASX-listed company focused on the exploration and development of oil and gas projects, has provided an update on drilling operations at the Wombat-5, side-track-1 (ST-1) well in the Gippsland Basin, Victoria. As of 8:00 am AEST today, the well’s current depth is 470 metres below the rotary table (mRT), with no progress made in the last 24 hours. The target formation is the Strzelecki Formation, with a target depth of 1,360 mRT (true vertical depth). There have been no lost time injuries (LTIs) reported.
Since the previous update, Lakes Blue Energy has commissioned an independent investigation into the mud circulation issues encountered during drilling. A draft of the findings is expected today. The company has received the contractor’s final report this morning and is currently reviewing it. The free section of the drill-string has been successfully recovered from above a depth of 896 mRT, and a cement plug has been set back from that level to approximately 470 mRT, with good cement returns indicating the hole is still in good condition.
A remedy for the mud circulation system issue appears to have been identified after further failures on Saturday. The system is currently undergoing stress testing, with no further issues observed so far. Once stress testing is complete and the necessary replacement equipment for the bottomhole assembly arrives on site, the 8-1/2” directional assembly will be run in hole to kick off and drill ahead to the 7” casing point.
Any decision to recommence drilling is contingent upon the company reviewing both the independent expert’s report and the contractor’s final investigation report. Lakes Blue Energy must be satisfied that the rig is fit for purpose and that the contractor’s assurances regarding the suitability of the mud circulating system are sufficient. The announcement was authorised by the Board of Lakes Blue Energy.
