Lakes Oil schedules Wombat-5 perforation for September and targets up to two Portland wells in late 2026

Lakes Oil NL (ASX:LKO) has two operational steps ahead, and both are subject to regulatory approval.

What is planned

• Wombat-5, Gippsland Basin, Victoria: On 29 July 2026 the company said perforation, stimulation and flow testing of its propellant enhanced perforation program were "scheduled to commence in September 2026." The filings provided do not confirm whether work began.
• Portland Energy Project, Otway Basin: In its 30 April quarterly report the company said it was working "with a view to drilling up to two wells in the second half of the 2026 calendar year."

Why Wombat matters

The company describes Wombat as wholly owned. Its table lists Wombat as a contingent gas resource of 258 to 628 bcf, with a best estimate of 329 bcf. A contingent resource is gas that has been found but is not yet judged commercially recoverable. Production testing of Wombat-5 began in January 2026. Gas flowed from all three principal sand packages, but the company said "additional operations would be required to optimise gas flow." The perforation program is that next step. If it works, it could support a case for commercialisation. That outcome is not assured.

Why Portland matters

Portland (licence PEP 175, 100% interest) is a prospective, not yet drilled, gas target. The company's best estimate is 11,469 bcf, within a range of 3,943 to 25,477 bcf. It puts the chance of success at 0.15, meaning the drilling is high-risk. A successful well would turn an estimate into data, but a dry hole would be consistent with the stated odds.

Other holdings

The company also lists Baragwanath, a 701 bcf prospective gas estimate, and small oil prospects at Bendee and Emu Apple. Stockle's inputs show a 17.97% interest in Bendee, while the quarterly table lists 100% for the licence that contains it. We have not reconciled the two figures. Several other estimates are old, such as Benara's, which dates from 2018.

What is uncertain

Neither program has a confirmed approval in the material provided. Portland's timing is a six-month window, not a date. The company reported cash of $3.95 million at 31 March 2026. Its recent filings show an entitlement issue that closed on 21 August, with a shortfall notification, and a general meeting notice. The inputs do not say how much was raised or how the money will be spent.