Nangwarry Project

PRL 249 | Otway Basin

Lakes Blue Energy, through its subsidiary Otway Energy Pty Ltd, holds a 50% operating interest in Petroleum Retention Licence 249 (PRL 249), located in the South Australian section of the onshore Otway Basin. After accounting for minor third-party holdings in Otway Energy, Lakes’ net interest in the licence equates to 46.76%.

PRL 249 hosts the Nangwarry Carbon Dioxide Project, a high-purity CO₂ resource discovered in 2020. The reservoir contains carbon dioxide with a purity exceeding 90%, making it a strong candidate for future development targeting industrial, medical and food-grade applications.

Extended production testing of the Nangwarry-1 well was conducted in March 2021. The well flowed raw gas at rates of up to 18.6 million standard cubic feet per day (MMscfd), supporting independent estimates of recoverable sales gas volumes. The test results confirmed the well’s productivity and demonstrated reservoir integrity for future development.

Lakes, together with joint venture partner Vintage Energy Pty Ltd, is currently assessing development pathways to produce and process food-grade carbon dioxide from the Nangwarry resource. Concept plans under evaluation envisage an initial production rate of approximately 2.0 MMscfd, equivalent to approximately 100 tonnes of CO₂ per day, with the potential to scale to 4.0 MMscfd (200 tonnes per day) as demand and infrastructure evolve.

The Nangwarry Project represents a niche but strategic opportunity in the Australian onshore gas sector, with a potential role in supporting domestic industrial supply chains for high-purity CO₂ products.

Table: Independently Certified Carbon Dioxide Total Sales Gas Volume and Net to Lakes