- Galilee Energy (GLL) shares have spiked following an update on the Glenaras multi-well pilot program within Queensland’s Galilee Basin
- GLL says the pilot pump enhancement program, which is nearing the final stages, has been executed safely, on time and within budget
- The program saw workovers in all six of the site’s vertical wells, aimed at optimising production performance and accelerating natural gas production
- Total pilot water production now sits around 19,000 barrels of water per day
- Galilee says it is encouraged by natural gas production already observed at three of the new vertical wells
- The company has now commissioned a second pivot irrigation system, which is fully operational
- Galilee Energy shares are up 4.94 per cent, trading at 85 cents each
Galilee Energy’s (GLL) shares have spiked this afternoon after the company updated the market on its Glenaras multi-well pilot program within Queensland’s Galilee Basin.
Based in Brisbane, GLL is focussed on creating a high-value exploration and production company, building on its core strengths in coal seam gas appraisal and development.
It says its pilot pump enhancement program (PEP), which is nearing the final stages, has been executed safely, on time and within budget.
Notably, the PEP included workovers in all six of the site’s vertical wells, aimed at optimising production performance and accelerating natural gas production.
Accordingly, GLL says total pilot water production now sits at around 19,000 barrels of water per day.
Additionally, and despite the early stage of production optimisation, the pilot’s aggregate natural gas rate is increasing, coming in at over 60,000 standard cubic feet per day.
Galilee says it is encouraged by the natural gas production already observed at three of the new vertical wells, with the remaining production optimisation to be realised as the company finalises commissioning of the last two wells and maximises pressure drawdown on each.
Further, the PEP saw larger capacity pumps installed in the vertical wells, successfully increasing the water rate by 30 per cent.
Following the installation, early data indicates an acceleration in the decline of reservoir pressure, with the company expecting a continued increase in the natural gas rate once a greater proportion of the pilot area is below the estimated critical desorption pressure.
Meanwhile, GLL has commissioned a second pivot irrigation system — an important component of the requisite water handling capacity — which is now fully operational.
The company is continuing to take advantage of the rig’s location to conduct further optimisation activities and provide scope for natural gas increases in the central, lateral wells.
Galilee Energy shares have spiked 4.94 per cent to trade at 85 cents at 3:46 pm AEST.