Galilee Energy has announced the Glenaras 16 and 21 wells are both back online following servicing and a replacement of surface equipment.
Both wells are now delivering average daily gas rates from the Pilot stable of around 50 million standard cubic feet per day (mscfd) with total water production of 17,000 barrels of water per day (bwpd).
Galilee said that reservoir pressure indicates there has been significant progress in the depressurisation of Betts Creek coals, but not an acceptable rate to achieve commercial gas production in a sufficient timeframe.
Modelling undertaken by Schlumberger has confirmed that the significant pressure sink already created can be sufficiently enhanced if five new versicle wells are drilled around the southwestern flank of the Pilot.
Galilee has also secured a drilling rig for the upcoming drilling program at the Glenaras multi-well pilot.
Following the successful capital raising of $11.8 million last week, the company has signed the Silver City Rig 23.
Drilling is expected to commence mid-April and all necessary long lead items have been ordered with several items already in storage onsite.
Planning is underway to construct the electrical, gas and watering systems for the five new production wells.
Galilee managing director and chief executive David Casey said this is an exciting time for the company as it prepares to drill the wells and unlock the potential of the Glenaras gas resources.
“Success at Glenaras will be transformational for Galilee as it seeks to become a material gas producer in the attractively priced east coast gas markets,” Casey said.
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