Lakes Blue Energy NL announced that drilling operations at Wellesley have been completed and Easternwell's Rig #101 is being demobilised. While it is disappointing that Wellesley-2 was not capable of gas production it has, nonetheless, provided information that confirms the prospectivity of the Wellesley Dome and will assist with formulation of future exploration plans. The well confirmed the presence of the Evergreen Formation and, in particular, the Boxvale Sands.

Based upon logging data, it is apparent that the well intersected the muddy periphery, rather than the thick permeable section, of the Jurassic-aged channel that contains the Boxvale Sands. The Company is preparing for, and will in the near-term undertake, an iodine survey over the Wellesley Dome. This involves taking a widespread matrix of small soil samples that are analysed for iodine content, with higher concentrations being an indirect indication of areas favourable for petroleum accumulations.

Data from the iodine survey will be utilised to design a 3D seismic program to better delineate the Wellesley structure and, in turn, to allow selection of location(s) for future exploration drilling. Directors also advise that work has commenced toward securing approvals for drilling of the Wombat-5 and Otway-1 conventional gas wells in Victoria. The first part of this process involves stakeholder engagement programs, to identify and address stakeholder concerns, following which Operating Plans, with full details of the proposed drilling activity, can be finalised and submitted for approval.