Lakes Blue Energy (ASX: LKO) has released an update on drilling operations at the Wombat-5, side-track-1 (ST-1) well in the Gippsland Basin, Victoria. Lakes Blue Energy is an Australian energy company focused on the development of natural gas resources. As of 8:00 am AEST today, the well’s current depth is 1,091 metres below the rotary table (mRT), measured depth (MD), with the last casing point set at 302.4 mRT (MD). Drilling commenced 13 days prior, targeting the Strzelecki Formation at a depth of 1,360 mRT (true vertical depth).
Recent operations have been hampered by the loss of suction on the mud pumps, preventing mud circulation within the hole. The contractor is investigating the cause, with preliminary assessments suggesting electrical or mechanical failure of the mud pumps and related surface equipment are not to blame. A report on the investigation is expected today.
Furthermore, the Bottom Hole Assembly (BHA) became stuck at approximately 1,088 mRT due to the inability to circulate mud. Attempts to free the BHA have been unsuccessful. The company has decided to sever and retrieve the drill-string above the sticking point. Equipment for the retrieval is expected onsite this evening, with retrieval operations scheduled for tomorrow morning. Lakes Blue Energy has insurance in place to cover most of the lost drill-string costs.
Following the drill-string recovery, a cement plug will be set to redirect drilling around the stuck pipe, aiming for the 7” casing point at approximately 1,548 mRT (MD). Any future drilling is subject to a review of the Contractor’s report by the Company. The announcement was authorised by the Board of Lakes Blue Energy.
