- Rig mobilising to site to spud well first week of July.
- Construction of Zydeco-1 drilling site completed.
- Marks transition into the final stages of preparation for drilling.
- Zydeco-1 targeting large conventional Gulf Coast un-risked gas accumulation.
Galilee Energy (ASX:GLL) is set for a key milestone in its U.S. oil and gas development strategy with the Zydeco-1 well in Louisiana to spud early next month. Well-known for its history in the hunt for oil and gas in Australia, the company recently switched its focus to targeting U.S. Gulf Coast unrisked accumulations.
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The first of those is Zydeco-1, where it is chasing up to 13.7 billion cubic feet (Bcf)of gas and 0.610 million barrels (MMbbl) of condensate/oil across multiple reservoirs.
Galilee’s managing director, Joseph Graham, told shareholders this morning that construction of the Zydeco-1 drilling site has now been finalised, and is ready to receive the drilling rig and associated services.
“Completion of the Zydeco-1 drilling location is a significant milestone and reflects months of disciplined preparation by the project team,” Mr Graham said.
“With domestic US oil and gas production increasingly strategic, Zydeco-1 provides Galilee with timely exposure to a high-impact Gulf Coast opportunity as we move toward rig mobilisation and drilling.”
The completed site includes the access road, drilling pad and equipment staging areas required to support the upcoming drilling campaign.
Zydeco represents the first execution of Galilee’s strategy to build a scalable U.S. Gulf Coast oil and gas business focused on low-risk development and redevelopment opportunities and near-term production and cash flow generation.
The company believes successful execution of Zydeco-1 can provide a platform for pursuing a broader portfolio of similar Gulf Coast opportunities capable of delivering repeatable growth and long-term shareholder value.
Following drilling, Zydeco-1 will undergo wireline logging, evaluation and testing. In the event of a successful outcome, Galilee intends to progress the project toward rapid commercialisation utilising existing regional infrastructure, with a pathway to first production within approximately six months of drilling success.
GLL is steady at 0.6¢. Mkt cap $10.86M.
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