Lakes Blue Energy (ASX:LKO) said the drilling rate increased significantly at the Wombat-5, side-track-2 well in Victoria, reflecting the improved drilling conditions on intersecting the Strzelecki formation, according to a Friday Australian bourse filing.

The formation was intersected at 1,410 meters below the rotary table of measured depth, and the well is currently drilling ahead at 1,470 meters below the rotary table of measured depth.

Overnight initial methane, ethane, and propane shows were identified in increasingly larger quantities, of up to 2,400 parts per million in the drilling mud. The firm expects the intensity of gas shows to increase in line with previous wells.

The firm's shares jumped 11% in recent trading on Friday.