The Project has one of the largest contingent gas resources on the east coast and is strongly positioned to supply the AEMO's forecast eastern Australian domestic market gas shortfall in the early 2020's. The Project's independently derived and certified Contingent Resource within the
Glenaras Pilot Enhancement Programme
Following on from the results of the Glenaras 17A observation well and the Schlumberger reservoir simulation study, an additional five new vertical wells were drilled safely, on time and within budget. The objective of these additional wells was to enhance the reservoir pressure drawdown to accelerate the onset of gas production. Each of the five new vertical wells and the existing observation well at the Pilot are now on continuous production and the total water rate from the full Pilot is 14,600 BWPD.
Water rates from the lateral wells have declined a further 20% since the first of the new wells was commissioned and this production decline is a clear indication of pressure depletion in the central area of the Pilot. The water rates from the additional six wells are exceeding the estimated rates from the recent Schlumberger reservoir modelling which augurs well for achieving the Pilot's intended objective of accelerating the depressurisation process and achieving commercial gas flow rates. The gas rate at the Pilot remains steady at the previous reported rates. However, we are expecting an increase in this rate in the coming weeks/months as we lower the reservoir pressure within the Pilot area below the critical desorption pressure. We will keep the market informed. Despite the high rainfall experienced in the region over the past month, all necessary action has been taken to ensure continuity of operations with no interruption to Pilot production experienced to date.
Significant progress has been made with the Glenaras irrigation trial, with the centre pivot irrigation system now fully operational and utilizing produced water with no treatment required due to the high quality of the water. The forage sorghum crop was planted in mid-October with the first crop having been cut for hay production in the past week. This is aimed at providing significant assistance to landholders for livestock management and importantly provides proof of concept of a scalable, low-cost solution for produced water at the Project. Site construction of the 2 ML/d reverse osmosis water treatment plant is complete and commissioning of the plant has commenced. This treated water will be available for utilisation in the managed aquifer recharge project which was recently approved by
Heads of Agreement signed with Sunshot Energy
Galilee entered into a Heads of Agreement (HOA) with Sunshot Energy to work together exclusively with respect to a number of opportunities associated with the proposed
These opportunities would provide multiple benefits, including early cashflow and proof of concept for our 1st phase development, which is necessary prior to progressing to final investment decision (FID) on the
Galilee Managing Director
About Sunshot Energy
Sunshot Energy and sister company ZEN Energy deliver integrated energy solutions combining onsite renewable energy hardware with renewables backed energy supply contracts, delivering affordable, reliable zero carbon electricity to large energy users. The availability of highly competitive zero carbon wholesale electricity from Sunshot Energy enables ZEN Energy (retail) to increase competition in the energy market and lower costs through use of renewable energy. Leading economist
PCAs 314 and 315 have been awarded for 15 years and 10 years respectively. The award of these two PCAs is a key step towards commercialisation of the
Seismic Reprocessing Update
Over 696km of 2D seismic data has been reprocessed in and around ATP 2050 and integrated with an additional 900km of 2D data in order to produce contemporary time and depth maps of the key Permian geological horizons in the permit.
Exploration focus is now being placed on the multiple conventional gas prospects and leads that have been identified through the reprocessing and remapping. The improved visualisation of the subsurface structure and stratigraphy has confirmed several potential gas-bearing structures which are highly prospective and analogous to the adjacent Northern Denison gas fields of Springton-Arcturus, Yandina and
QGC and Galilee have now jointly executed the data swap agreement for exchange of the data acquired in the Kumbarilla drilling campaign for the pilot production data in the adjacent PL 1009 held by QGC.
Corporate
The cash flow for the Quarter is presented in the accompanying Appendix 5B (quarterly Cashflow Report). The Company continues to maintain a very strong cash position at
The strong demand for the Placement demonstrated growing momentum in the strength of the east coast gas market and is a strong endorsement of the
Contact:
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About Galilee
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