Galilee Energy Provides an Update on the Glenaras Gas Pilot Program

- Workover operations on G10L, G17, G20 and G23 completed successfully with each of these high producing wells back online.
- Total pilot water production restored to previous rates in excess of ~18,000 BWPD.
- Direct pressure measurements confirm entire Betts Creek Coals are being de-pressured (pumped off) thereby unlocking significant gas reserves in multiple coal seams across a large area of the Glenaras field.
- Once unlocked the Glenaras field will be one of the largest (multi TCF) uncontracted gas resources accessible to supply the short eastern Australian gas market.

Further to the operational update released to the ASX in the September 2021 Quarterly Report on 28th October 2021, Galilee Energy Limited (ASX:GLL) is pleased to provide an update on the 100% owned and operated Glenaras multi-well pilot programme (“Pilot“) in the Galilee Basin ATP 2019.

The workover programme, carried out over 2 separate campaigns has safely and successfully installed appropriately sized new pumps in the G10L, G17, G20, and G23 wells incorporating modifications to improve the handling of gas production, leaving the central G14L well (a low water producing horizontal well in the R3 seam) as a valuable observation well.

These pumps are back online with water production having been gradually restored to rates in excess of 18,000 BWPD with the expectation of bringing the pressure drawdown below previously achieved levels.

Prior to the previously reported pump failures, the Pump Enhancement Programme (PEP) progressively implemented mid-year (ASX release 29 July 2021) was successfully drawing down the pressure across the Pilot area at an accelerated rate.

The resumption of pumping in the workover wells will greatly assist the rest of the Pilot, which has continued to produce at around 12,000 BWPD, to again begin to achieve enhanced pressure depletion across a greater area, resulting in significantly increased gas desorption rates. The prize is that the Glenaras Pilot would then unlock one of the largest (multi-TCF) uncontracted gas resources accessible to the supply-short eastern Australian gas market.

The reason for the recent workover campaign has been to restore the high +18,000 BWPD water rates which have demonstrably depleted pressures in the entire multi-seam Betts Creek sequence as far as 7 kms from the central Pilot area (ASX release 24 June 2021).

Galilee’s Managing Director & CEO, David Casey said “As the newest member of the Galilee team I’ve been very impressed with the professionalism by which the team have completed these workovers in a safe, efficient and timely manner, particularly given recent heavy rainfall throughout much of Queensland.

If there is a positive to come out of having to undertake the workovers it’s that it is becoming apparent that the critical desorption pressure was in fact reached and that the onset of gas production probably contributed to the recent pump failures. While this issue has now been remedied, in my experience I see this as a positive, as very often some of the best performing wells are some of the most difficult to manage early in the desorption process.”