- Spud on schedule and budget
- Represents first stage to build scalable US Gulf Coast oil and gas business
- Zydeco-1 testing large conventional gas-condensate target
- Estimated to have potential commercial resources of gas and condensate
Galilee Energy (ASX:GLL) has kicked off the first stage of what it is hoping will be a company-changing move to develop valuable gas and condensate fields in the US.
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The company has officially spudded the Zydeco-1 well and drilling operations are now underway in Louisiana.
The company is confident it can achieve early production from the well if it is successful in hitting a target with estimated resources of up to 13.7 billion cubic feet (BCF) of gas and 610,000 barrels of condensate.
MD, Joseph Graham, said spudding Zydeco-1 is an exciting moment for Galilee.
“This is the point where years of technical work, disciplined preparation and careful execution move into the drill bit,” he said.
“The rig is turning, the well is underway and we are now testing a high-impact conventional gas-condensate opportunity in one of the most productive hydrocarbon regions in the United States.
“The team has done an outstanding job getting Zydeco-1 to this point safely, on schedule and within budget.
“We now have a clear drilling program ahead of us, with the key value point expected when electric logs are run across the Tweedle formations. If these logs confirm the hydrocarbon pay we are targeting, Galilee expects to move rapidly into completion, surface facilities and pipeline tie-in. This is exactly the kind of well that can change the scale and direction of the company.”
Zydeco-1 is now being drilled as a conventional Gulf Coast gas-condensate well. The first phase of the program is designed to establish a secure wellbore before the well is drilled deeper toward the main reservoir objectives.
The drilling program will progressively drill, protect and evaluate the well, casing is steel pipe cemented into place to stabilise and isolate sections of the wellbore, while logging tools measure the rocks and fluids encountered as the well is drilled and after it reaches the target formations.
Mr Graham said the key value point in the near-term drilling program is expected after the well has drilled through the Upper Tweedle and Lower Tweedle formations and the electric logs have been run.
Subject to drilling progress and operational conditions, Galilee expects the next material market update (during August) to be made after electric logging of the Tweedle formations.
If hydrocarbon pay and commercial reservoir quality are confirmed, the company plans to move directly into running the completion, constructing surface facilities and tying into the Texas Gas Pipeline,
GLL was steady at 0.7¢ with a Mkt cap of $12.67M before markets opened.
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