Galilee Energy up 7.46 cents, after high-grade coal drill

• Galilee Energy has struck high-quality coal, south-west of Townsville
• The company yielded 308 metres of high-grade coal from its Glenaras Gas Project
• The results come from a 2019 lateral drilling programme, now prompting the company to be on track for achieving their target material gas flow and reserves for the year

Brisbane based Galilee Energy announced today positive results from its Glenaras Gas Project. As part of a 2019 lateral programme, hole Glenaras 16L was drilled, yielding 308 metres of coal.

The company remarked the execution of drilling as safe, on schedule and within budget. Galilee says the coal retrieved over the programme has shown high quality cleating and brightness, representing a highly positive result.

Company Managing Director Peter Lansom expressed pride in the company’s technical team in yielding the abundance of the high-quality coal.

“We now have a well designed, shielded five-well lateral pilot in excellent coal which provides the platform for us to drawdown a large area of coal below critical desorption pressure which we hope will progress to material gas rates,” he said.

Management says the project is now de-risked. The five well lateral pilot showing excellent coal results now provides the company with opportunity to achieve target material gas flow and reserves for the year.

The Glenaras 16L deposit has now been suspended pending the completion of an electric submersible pump, planned to commence by the end of next month.

Galilee management is hoping for the new lateral wells as part of the programme to be in full swing of production by early July this year.

The company gained full interest in the project south-west of Townsville in late 2015. Galilee is now working on securing and installing gas and water pipelines on site.

Shareholders in GLL enjoyed a 7.46 per cent bump this morning, causing shares to shift to 72 cents each. The company’s market cap remains at $151.2 million.