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- Contract for drilling contract executed for Zydeco-1 well
- Well to be drilled to a depth of 10,000 feet
- Confirmed to spud in first week of July
- Targeting gas, oil and condensate across multiple reservoir targets
Galilee Energy (ASX: GLL) is set to test for liquids rich gas and oil at the Zydeco project in Louisiana, USA after inking a rig contract with a local specialist.
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The company has executed a significant operational milestone with the signing of a formal drilling contract with RFC Drilling for the use of Rig 103.
The move marks the transition of the Zydeco project from planning and engineering into the execution phase ahead of drilling and the potential to fast-track commercialisation.
MD, Joseph Graham, noted the contract secures rig availability for the drilling of Zydeco-1 to a planned depth of approximately 10,000 feet and materially reduces scheduling risk associated with securing drilling equipment in the active US Gulf Coast market.
“We are now set to drill and the execution of the Rig 103 contract is a critical milestone for Galilee Energy and marks the transition of the Zydeco project from planning into execution,” he said.
“Securing the rig provides certainty around our drilling schedule and reflects the significant operational progress made over recent months as we advance toward spud.
“Importantly, this milestone now allows the company to focus on final operational readiness activities, including execution of remaining service contracts and completion of site preparations ahead of drilling.”
Mr Graham told shareholders the company is entering drilling against a backdrop of strong oil, gas and condensate pricing, which materially enhances the prospectivity and potential economics of the project.
“With the contract signed, costs fixed and a start in July confirmed, Galilee is fully prepared to spud Zydeco-1 and begin unlocking the value of this high-impact Gulf Coast opportunity.”
Galilee is now finalising remaining key service contracts and completing site preparation and logistics planning.
Zydeco-1 is located within a proven Gulf Coast gas-condensate fairway and in the proximity of producing fields including Indigo and Frey -1 and if successful can be connected via a short gas spur line to the Texas Gas Pipeline.
The company is targeting first production within approximately six months of successful drilling, providing a clear pathway to potential early revenue generation and cash flow.
GLL is steady at 0.7¢. Mkt cap $12.67M.
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