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  • Coal seam gas developer Galilee Energy (GLL) has found more than expected at its first exploration well at Kumbarilla in the Surat Basin
  • Drilling intersected and confirmed a coal band of 25 metres across the three primary targets which exceeded the pre-drill expectations
  • But due to a combination of slow coring rates and drilling mud weight issues, there were downhole issues which didn’t allow proper flow testing of the well
  • The drill rig is now being mobilised to a second of the three sites to test the same three targets as the first hole
  • Galilee Energy gained 3.9 per cent through Friday’s session to close at 67 cents per share

Coal seam gas developer Galilee Energy (GLL) has found more than expected at its first exploration well at Kumbarilla in the Surat Basin.

Well Well

The well, now completed to a depth of 1020 metres, was targeting the Walloon subgroup. The target was intersected and confirmed a coal band of 25 metres across the three primary targets – the Upper Juandah, Lower Juandah
and Taroom coal measures – which exceeded the pre-drill expectations.

The seams displayed excellent qualities including strong gas shows upon penetration, bright vitrinite banding, excellent cleat development and pervasive internal fracturing, which all bode well for a rich and relatively easily exploitable resource.

20 high-quality samples have been collected for analysis to confirm the gas content, gas saturation and gas chemistry of the coals.

Unwell

The drilling did run into some problems though. One primary objective of the well was to assess flow quality and permeability of the various primary coal targets.

Due to a combination of slow coring rates and drilling mud weight issues, there were downhole issues which didn’t allow proper flow testing of the well.

Even with the promising coal samples retrieved, there is insufficient data to properly affirm the contingent resources as actual reserves. Galilee will have to modify its drilling technique on subsequent wells to avoid such downhole issues in order to properly measure the actual resource.

Go well

The drill rig is now being mobilised to a second of the three sites to test the same three targets as the first hole.

Best current estimates of the contingent resource stand at 504 petajoules of gas. If Galilee can define the actual reserve, the project’s proximity to existing infrastructure – at less than 10 kilometres – means it could be expedited to market at a minimal cost.

Galilee Energy gained 3.9 per cent through Friday’s session to close at 67 cents per share.

GLL by the numbers
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