Lakes Blue Energy secured $6.5 million in funding by selling its 49% stake in Petroleum Exploration Permit 169 in Victoria to ADZ Energy.
The deal includes a royalty arrangement on future petroleum sales. An initial $340,000 payment will be placed in escrow immediately, with $3 million following regulatory approvals and $3.5 million upon transfer registration.
CEO Roland Sleeman highlighted the benefits for shareholders, noting the funding will support drilling the Wombat-5 well in the second quarter of 2025 and provide royalties from PEP 169.
The Wombat Project, alongside the Trifon/Gangell gas fields, is central to the company’s strategy to commercialise its gas resources.