Melbourne-based Lakes Oil N.L. (LKO) announced Wednesday that it has submitted an application to drill a new well, Wombat 5, in Australia's Gippsland Basin in the New Year.
This well will be drilled conventionally and will not involve hydraulic fracturing.
The Chairman of LKO, Robert Annells, said that Wombat 5, to be drilled in the Gippsland Basin, was inspired after his geology team carefully studied conventional discoveries both in Australia and overseas in recent times.
“We believe our company can achieve commercial gas production using traditional methods to recover gas from the ‘weathered’ zone at the top of the Strzelecki Formation, proved to be present over a wide area in Gippsland,” he said.
“In particular we took a close look at the conventionally drilled and successful Longtom gas field offshore in Bass Strait.
“We know how Longtom worked; it was a commercial winner offshore and we believe that we have similar circumstances onshore.
“If successful, Wombat 5 will not only commercialize the entire Wombat structure, but potentially the Macalister, Trifon and Gangell fields as well.
“This could deliver a significant amount of gas at a time of rising prices and projected shortages.
“Lakes is prepared to restrict the sale of this gas, which will be produced more cheaply than offshore gas, to only Victorian and New South Wales customers.
“No gas will be sold for export.
“Accordingly, we believe this new supply, when in production, will help to bring down domestic gas prices. Worth noting is that the onshore gas we are looking to supply contains less than 0.1 percent CO2 (carbon dioxide) unlike other gas being produced in the country, which can contain up to 40 percent CO2.
“With all this in mind it is time to let LKO get on with the job, subject to financing, to achieve new onshore discoveries, creating jobs, receiving both government and town support and cutting the price of gas so vital to locals and industry”, he said.
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