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- RFC Drilling Rig 103 has arrived on location.
- Key pre-spud activities completed.
- Derrick raise final major visible rig-up milestone before spud.
- Zydeco-1 scheduled to spud in the first week of July.
Galilee Energy (ASX:GLL) is confident it can obtain early cash flow from the Zydeco-1 well, which is set to spud next week. The Australian company’s first well in its new U.S. Gulf Coast fairway strategy, the transformative Zydeco-1 well is entering into final rigging-up preparations in Louisiana.
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“This is an outstanding final update before spud. The rig is on location, the derrick is standing over the well centre, and the team is now completing the last checks before drilling begins,” MD, Joseph Graham, said.
“Just as importantly, the work has continued to be delivered safely, on time, and on budget, which is a credit to our U.S. team, advisory board and highly experienced local contractors.
“Zydeco-1 is a potentially transformative well for Galilee. It is a high-impact conventional gas-condensate test in a proven Gulf Coast fairway, with a clear pathway to rapid commercialisation in the event of success. With the rig up and final rig-up underway, all systems are now go for drilling.”
Mr Graham said the raising of the drilling derrick marks the transition from site construction and rig mobilisation into final rig-up and pre-spud readiness. “In simple terms, the rig has moved from being assembled on location to being stood up over the precise point where the well will be drilled.”
Galilee has now progressed through geological evaluation, lease acquisition, surveying, permitting, well design, site construction, rig mobilisation and rig-up while maintaining the planned schedule and budget.
Zydeco-1 will test a range of objectives within a proven Gulf Coast gas-condensate fairway. The well is targeting a large conventional un-risked 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.
In the event of drilling success, Galilee will progress toward rapid commercialisation utilising existing regional infrastructure, with a pathway to first production within approximately six months of drilling success.
GLL is steady at 0.7¢. Mkt cap $12.67M.
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