Lakes Blue Energy has executed an asset sale and purchase agreement for the sale of its 49% interest in Petroleum exploration permit 169 to ADZ Energy.
Following the agreement, Lakes Blue Energy will receive the first payment of $3 million, with an additional $3.5 million upon title transfer registration.
The funds will accelerate the commercialisation of the Wombat gas project in Gippsland.
"A key milestone for the company, enabling active advancement of the Wombat project," said Richard Ash, chairman of Lakes Blue Energy.
The proceeds from the sale will primarily support the drilling of the Wombat-5 well, targeted for the second quarter of 2025.
Preparation efforts include updating cultural heritage surveys and a new environmental management plan.
The strategic move signifies a significant step towards unlocking the commercial potential of the Wombat and Trifon/Gangell gasfields, which together hold an estimated 450 billion cubic feet of recoverable gas.
Lakes Blue Energy is engaged in the exploration for oil and gas within Australia and Papua New Guinea. Its projects include Nangwarry Carbon Dioxide, Wombat Gas Field, Trifon/Gangell Gas Field, Baragwanath Gas Field, Roma Shelf Project, Enterprise North, Otway-1, Portland Energy Project, and Buna.
At the time of reporting, Lakes Blue Energy’s share price was $0.001.