Galleon Energy Drills 13 Wells During Q1 of 2004


Galleon Focus Areas, Canada
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In the first quarter of 2004, Galleon Energy drilled 13 wells. Nine of these wells were exploration, including three wells at Calais, Alberta, four wells at Dawson, Alberta and two wells in other areas. A total of nine wells have been cased for natural gas production. Galleon spent approximately $10 million on land acquisitions, seismic, drilling and completion activities in the first quarter of 2004. Additionally, $2.3 million was spent to acquire an interest in a gas plant at Calais.

Current production is over 1,400 barrels of oil equivalent per day (6:1) ("boepd") with 72% natural gas. Galleon plans to drill 18 to 24 wells in the next nine months.

Galleon's upward revised production guidance for 2004 is an average of 1,475 boepd and an exit volume of 2,500 boepd. Galleon expects to average 1,400 boepd for the second quarter, 1,600 boepd for the third quarter and 2,100 boepd for the fourth quarter.

Details of the drilling results and plans for the balance of the year are as follows:

Calais, North West Alberta

  • Drilled three wells resulting in two natural gas wells with an average 60% working interest;
  • Both of these wells are significant discoveries and completion information is being held confidential;
  • The two wells will be brought on stream in the next six months;
  • Galleon increased its land access by 49 sections (31,360 gross acres) through 4 farm-in agreements and acquisitions;
  • Galleon's current total land access in this area is 221 sections (141,440 gross acres); and
  • 10 to 14 wells are planned in the next nine months.


  • Dawson, North West Alberta

  • Drilled four wells resulting in three natural gas wells with an average 79% working interest;
  • Five natural gas pools were discovered;
  • The first two gas pools have tested at rates of 250 and 1,000 thousand cubic feet per day;
  • Galleon increased its land access by 18 sections (11,520 gross acres) through 4 farm-in agreements and acquisitions;
  • Galleon's total current land access in this area is 163 sections (104,320 gross acres); and
  • 8 to 10 wells are planned in the next nine months.


  • Wymark, South West Saskatchewan

  • Four successful development wells (100% working interest) were drilled and have been brought on stream at a stabilized rate of 400 thousand cubic feet per day (67 boepd).


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