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- Zydeco-1 intersects Homeseeker B sand on prognosis
- Results further de-risk project economics
- Continuous high pressure gas readings recorded
- Drilling continuing to primary Tweedel sand target
Galilee Energy’s (ASX:GLL) confidence in the commercial potential of the Zydeco-1 well in the US has been boosted by the discovery of gas shows in the early stages of the well.
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The company has successfully drilled through the Homeseeker B sand on its way to the prime Tweedel sand target in Louisiana.
Notably, if Galilee is able to obtain commercial flow from the Homeseeker B sands it may be a bonus as hydrocarbons from these higher sands were not accounted for in the Zydeco -1 financial model
“We are very pleased with the initial results from Zydeco-1, where the Homeseeker B sand was intersected on prognosis at the anticipated depth,” MD, Joseph Graham, said.
“Continuous high-pressure gas readings recorded while drilling through the target interval indicate a strong hydrocarbon presence. The interval’s thickness and clean-sand development are consistent with the MacCabees B-1 offset well, and the observed depths support our pre-drill structural interpretation.
“As these sands were not included in the production and financial model, the results further reduce project risk and indicate potential for additional hydrocarbon production. Drilling is continuing as planned toward the primary Tweedel Sand target.”
Zydeco-1 is primarily targeting the Upper Tweedel and Lower Tweedel objectives within a proven Gulf Coast gas-condensate fairway. The well is testing a large conventional unrisked prospective gas accumulation of up to 13.7 billion cubic feet (BCF) of gas and 610,000 barrels of condensate, identified through modern geological interpretation and supported by 3D seismic data.
The well is also positioned up dip of an uphole oil test in the Homeseeker B, providing additional upside potential. Demonstrated production from a nearby well, along with historical well data and seismic provides support for reservoir continuity and quality.
In the event of success, Galilee intends to progress the project toward rapid commercialisation utilising existing regional infrastructure, including a short gas spur line to the Texas Gas Pipeline.
The company believes commercial execution of Zydeco-1 has the potential to provide a platform for a broader portfolio of similar Gulf Coast opportunities.
GLL was 0.6¢ prior to markets opening.
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