Oil and Gas News

Galilee on pathway to commercial gas production

Galilee Energy

Galilee Energy managing director David King has described the second quarter as a busy quarter of activity, with the company reaching a significant milestone at its Glenaras gas project .

“We reached a milestone with the inner area of the central pilot now below critical desorption and producing increasing gas, along with progressive pressure depletion in the out vertical wells,” King said.

“The depletion in the outer wells demonstrates excellent lateral connectivity in the reservoir across the entire permit. This augurs well for full field project economics and provides context for the additional amount of time taken thus far to reduce the pressure in the pilot area.”

King further outlined in the quarterly report that these breakthroughs, as well as its strengthening management team, have the company positioned on a pathway to achieve commercial gas production and become a provider of gas supply for the east coast domestic market.

The technical objective of the Glenaras pilot is to remove rater from the coal sequence in order tor educe the pressure in the coals, with the depressurisation allowing the gas stored in solid solution on the coal grains to be release through the coal seams and into the wells.

“The current gas rate is a reflection of only relatively small amount of coal immediately around the well bores being below the estimate critical desorption. Gas rates will continue to increase as this pressure sink expands inside the pilot area and more coal is exposed to pressure below the critical desorption level,” King said. 

In addition, Galilee Energy reported that the depletion in the out wells demonstrate the excellent lateral connectivity in the reservoir across a large part of the permit.

Late in the quarter the company saw its long-serving managing director Peter Lansom retired, with non-executive director and former chairman David King filling the position in the interim.

David Woodley and Jason Whitcombe were also appointed to the permanent staff positions of chief operating officer and operations manager.

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