Galilee expands Zydeco-1 opportunity as drilling confirms geological model

Galilee Energy (ASX:GLL) has broadened the scope of its Zydeco-1 well in Louisiana after drilling confirmed its geological model, with the project now targeting three prospective reservoir intervals instead of one.

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The company said the well has evolved from a single-target program into a three-target opportunity comprising Homeseeker B, the newly identified Stafford interval and the primary Upper and Lower Tweedel gas condensate targets.

Drilling reached a measured depth of 9,393 feet before being interrupted by a mechanical issue after drill pipe became stuck in the open-hole section. Galilee said the issue was confined to the open hole and did not affect the geological results, with the existing surface casing, wellhead, permits and drilling pad all available for reuse.

The company has elected to sidetrack the well, describing it as the most capital-efficient path to complete the geological evaluation.

Meanwhile, Stafford has emerged as a new target after gas readings exceeded 5,000 units, saturating the rig’s detector across the full interval.

Managing Director Joseph Graham said the geological results had strengthened confidence in the company’s primary target. The revised sidetrack is expected to kick off from the existing well at 2,760 feet and will have a planned total depth of around 9,800 feet, compared with the original 10,400-foot design.

The updated plan includes a shallower casing point aimed at mitigating the lost-circulation interval encountered in the original hole while allowing the company to re-drill Homeseeker B and Stafford before continuing to the Upper and Lower Tweedel objectives.

Galilee said the sidetrack will include wireline logging, formation pressure testing and fluid sampling across any prospective intervals.

The company’s immediate priorities are finalising the sidetrack design, contractor arrangements and drilling costs before remobilising to site.

GLL is trading at $0.60/share.

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