Galilee Energy: Rig Secured for Glenaras Drilling Program March 2, 2022

ASX/MEDIA ANNOUNCEMENT

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Secure platform for the Glenaras drilling program

March 2, 2022

Strong points

  • The Glenaras 16 and 21 wells are both back online with average total gas production of approximately 50 Mscfd and pilot water production at approximately 17,000 BWPD.
  • Signature of the contract for drilling and securing the Silver City Rig 23 platform.
  • Drilling of five new vertical production wells will begin in April.
  • The objective is to accelerate the depressurization of the Betts Creek coals and adjacent sands to initiate gas desorption and achieve commercial gas production in support of an initial reservation of material reserves.
  • All drilling, completion and surface installation items have been ordered.
  • Construction of rental blocks in progress.
  • All landowner and environmental approvals have been obtained for the drilling program.

Galilee Energy Limited (ASX:GLL) (“Galilee”) is pleased to provide the following operations update and announce that a drilling rig has been secured for the upcoming pilot drill program Glenaras multi-well (“Pilot”).

Following maintenance and replacement of surface equipment at Glenaras 16 and 21, these two wells are back online with an average pilot stable gas flow of approximately 50 Mscfd, with total water production of around 17,000 BWPD. Reservoir pressure monitoring indicates that there has been significant progress in depressurizing the Betts Creek coals, but not at an acceptable rate to achieve commercial gas production in sufficient time.

As previously reported, new modeling undertaken by Schlumberger, taking into account the southwest permeability conduit fault zone, has confirmed that the large pressure well already created can be sufficiently improved within 6 to 12 months if five new vertical wells (Glenaras 24-28) are drilled around the southwest flank of the pilot (Figure 1).

ASX/MEDIA ANNOUNCEMENT

Figure 1. New vertical production well locations.

Following the successful fundraising of $11.8 million last week, the company has now signed a drilling contract with Silver City for Platform 23. All landowner and environmental approvals have now been received for new well sites and civil construction works are progressing with rental blocks. currently under construction (see photos below).

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ASX/MEDIA ANNOUNCEMENT

Drilling is expected to begin in mid-April and all required long lead items have been ordered with several items already in storage at the site. Planning is underway to construct the electricity, gas and water collection systems for the five new production wells. All long-lead items have also been ordered for surface facilities, pipeline and power grid.

Silver city platform 23.

Work is well advanced on the design and procurement of a new mobile irrigation system which will be built and commissioned shortly with the aim of beneficially managing water production. It is important to note that the water produced is essentially fresh, requiring little or no treatment and can therefore be used for irrigation, providing opportunities for additional direct and indirect revenue streams in the future for Galilee.

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ASX/MEDIA ANNOUNCEMENT

Managing Director and CEO of Galilee, David Casey noted “This is an exciting time for Galilee as we prepare to drill these new wells and unlock the significant TCF potential of the Glenaras gas resource. Success at Glenaras will be transformational for Galilee as it seeks to become a significant gas producer in the attractively priced Eastern coastal gas markets, creating jobs and investment in regional areas and meeting the growing demand for gas as the world shifts to low-footprint energy alternatives carbon.”

For more information, contact:

David Casey – Managing Director

Galilee Energy Limited

+61 (0) 7 3177 9970

About Galilee

Galilee Energy is focused on building a high-value exploration and production company by leveraging its core strengths in coal bed gas evaluation and development. Its main area of ​​interest is Queensland, where it is evaluating its 100% owned Glenaras gas project in the Galilee Basin and exploring in the Surat and Bowen Basins, while seeking to add other high quality acreage to his wallet.

This announcement has been published with the authorization of the Board of Directors.

Directors

President – Ray Shorrocks

Managing Director – David Casey

Non-Executive Director – Stephen Kelemen

Non-Executive Director – Gordon Grieve

Non-Executive Director – Greg Columbus

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