HIGHLIGHTS
- Integrated subsurface model updated with contemporary Glenaras
pressure data and recently acquired and interpreted 3D seismic survey
- Glenaras data room remains open and active
- Studies of sustainability initiatives at Glenaras utilising the Project’s
abundant water resources as well as early commercial discussions on
hydrogen developments are ongoing
- Grant submission made to Queensland Government’s $21m Frontier Gas
Exploration Program for the Galilee and Bowen Basins
- Retaining a strong cash balance of $4.5 million with no debt
Galilee’s Executive Chairman, Ray Shorrocks, commented:
Our top priority at Glenaras remains a comprehensive analysis of data we have collected in the last 18
months or so. Following the drilling of the six wells in 2022 and collection of contemporary pressure data,
as well as the recent completion of the Project’s first ever 3D seismic survey there is a wealth of information
with which to update the project’s reservoir model. This work kicked off in the December Quarter and is now
complete. This activity is a critical step for Glenaras and for achieving commercial gas rates, which we
remain resolutely optimistic of.
Glenaras Gas Project (ATP 2019) – Galilee 100%
Galilee Energy Limited (“Galilee”) is
pleased to provide an update on the Glenaras
multi-well pilot programme (“Pilot”) in the
Galilee Basin in Queensland (Figure 1). The
Glenaras Gas Project (“Project”) is located in
ATP 2019, which is 100% owned and operated
by Galilee. The Permit covers an area of
approximately 3,200km2
.
At present, the Pilot has 3 wells online, with a
rotation strategy in place to collect further
subsurface data to assist in determining the
extent of any preferential, directional
reservoir characteristics.
The integrated subsurface model has been
updated with the extensive suite of
contemporary pressure data and the recently
acquired and interpreted Glenaras Pad 3D
Seismic Survey, which has provided
substantially increased resolution of the
structural and stratigraphic architecture of the
Betts Creek Beds.
With the new data and confirmation that the
coals are only now approaching the critical
desorption pressure required for material gas rates to result, this revised modelling exercise is crucial in
progressing the Pilot into the final stages of achieving commercial gas rates and maturing the material
Contingent Resource certified in ATP 2019.
Separate from the progress of gas desorption, Galilee continues to take steps to promote the sustainability
credentials of the project. Glenaras’ water resources continue to underpin the Company’s pursuit of potential
hydrogen production activities, part of Galilee’s strategy to become an integrated and diversified energy
provider. Galilee continues work on detailed scoping studies and front-end engineering work for a
demonstration project utilising the abundant relatively fresh water produced at Glenaras.
During the Quarter the Company made an application to the Queensland Government’s Frontier Gas Exploration
Program, under which $21m in grant funding is available “to explore and unlock new reserves in the Bowen and
Galilee Basins and bring Queensland gas to market sooner”. The Company expects that recipients of grants
under the program will be informed during 2024, potentially even late in the June Quarter.
The development of new gas supply is crucial for energy security and will continue to play an important role in
underpinning the reliability of the electricity market as Queensland works towards a 70 per cent renewable
energy target by 2032. Galilee Energy is of course well placed to assist in this regard with one of the largest
uncontracted gas resources in eastern Australia.
Kumbarilla Project (ATP 2043) – Galilee 100%
The conventional oil prospectivity of ATP 2043 remains the ongoing focus of technical studies with the key
objective of defining a potential low-cost, high value 2D seismic survey, which will mature the strong oil leads
identified in the permit to drillable status.
The multiple strong structural leads that have been mapped on the reprocessed seismic data are analogous to
the nearby Moonie oil field (~24 million barrels of oil produced to-date), which is positioned ~30km downdip
and along trend from ATP 2043. This proximity to a major oil field confirms ATP 2043 lies along a highly
prospective oil migration pathway on the eastern margin of the Taroom Trough and overlying Surat Basin, with
excellent probability of high-quality Precipice Sandstone being present.
Springsure Project (ATP 2050) – Galilee 100%
Technical evaluation of the conventional gas prospectivity of the Wandana Prospect and associated leads in ATP
2050 is ongoing. Integration of the petrophysical, geophysical and geological data is continuing with strong
indications that the Wandana Prospect potentially has gas pools in multiple, stacked reservoirs throughout the
Permian section in a structure that is drill-ready.
Corporate
The cashflow for the Quarter is presented in the accompanying Appendix 5B (Quarterly Cashflow Report).
The Company continues to maintain a strong cash position. As at March 31, 2024 cash was $4.5 million, with
no debt.
Given the disciplined approach to expenditure at the Glenaras Gas Project, spend for the quarter was modest.
During the period, the Company spent only $0.7 million on exploration and evaluation activities, primarily
Glenaras operations. The Appendix 5B includes an amount in item 6.1 which constitutes director’s fees paid in
the March Quarter.
To support the next stage of the Glenaras Pilot’s activity, the Glenaras Gas Project data room continues to
remain open with industry participants evaluating the project for potential investment. Galilee will also be
seeking additional financial support from the Queensland Government via submission to the Frontier Gas
Exploration Grants Program.
This announcement was released with the authority of the Board.