Gippsland

12.10.2021

The Company’s Gippsland focus is upon Petroleum Retention Lease 2 (PRL2), within which the Wombat (100% LKO) and Trifon/Gangell (57.2% LKO) gasfields are located.

The gasfields are known to exist, the Company having existing wells capable of producing gas. The existing wells are of traditional design, passing vertically through the reservoir and not historically capable of achieving gas flow rates high enough to achieve commerciality.

Wombat Gas Field – A known gas resource

Based upon known reservoir characteristics, ascertained during exploration activity, the Company has determined that a lateral well design, drilled into and then along through the reservoir (so as to have greater productive length) will achieve commerciality. The independently estimated deliverability of the lateral well design is 10 TJ/d.

Estimate prepared by SPC (Stimulation Petrophysics Consulting, LLC), “Production Forecast for the Proposed Lakes Oil Wombat 5”, September 2013. 

Illustrative Cross-section of Wombat-5 well

The Wombat-5 well was originally intended to be drilled around 2013, but this was prevented by a Victorian Government ban on onshore petroleum exploration. While the ban expired at mid 2021, new regulatory arrangements, to actually allow resumption of exploration, have yet to be finalised by Government.

The Company’s intention is to:

  • drill the Wombat-5 lateral gas well, located on Company owned land, as soon as approvals and funding (potentially from sales of Wellesley gas) are in place;

  • based upon the Wombat-5 well being successful, drill an additional 5 – 6 wells in order to achieve overall field productivity of 20 PJ/a, equivalent to 10% of Victoria’s annual gas demand;

  • install facilities to dehydrate (dry), compress and transfer Wombat gas into adjacent high pressure gas pipeline infrastructure; and

  • by around 2033, as productivity of gas from Wombat starts to decline, bring the Trifon/Gangell gas field on line to sustain gas sales of 20 PJ/a for an overall 20 year period. During the 20 years, additional wells will need to be drilled at both Wombat and Trifon/Gangell to maintain steady gas production.

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Gas FieldLKO InterestRecoverable Resource*
(net to Company)
Wombat100%329 Bcf
Trifon/Gagell57.5%223 Bcf

* Source of Contingent Resources estimate: “Technical GIIP and EUR Estimate Update Post Wombat #4: Wombat Field”, June 2010, Gaffney, Cline and Associates.