Galilee Energy Limited (Galilee or the Company) reported Thursday the mobilization of a workover rig and commencement of operations at the 100 percent-owned ATP 529P project in the Galilee Basin, Queensland, Australia.
The mobilization has occurred less than 3 weeks post the completion of the ATP 529P acquisition from AGL Energy Limited (remaining 50 percent and operatorship), announced Aug. 27. This demonstrates that with the transfer of project operatorship to Galilee, we are able to deliver cost effective and responsive operational capacity to this important project. The R1 coal seam testing program is now underway.
The immediate program will focus on a workover of the five existing Glenaras pilot wells. The program involves setting a bridge plug below the R1 seam to isolate the lower seams previously tested in these pilot wells. Galilee will then perforate the R1 coal seam and re-install pumps. Once all the wells have been completed, the wells will be put on production. This well completion will target the production potential of the uppermost R1 coal seam, allowing pressure drawdown of the coal without contribution from neighboring sands.
The workover program is anticipated to be completed in approximately 6 weeks, with the initial phase of the production testing to take between 6-9 months.
Successful commercial flow rates will be critical in converting the recently expanded Contingent Resources into reserves. Galilee recently announced a significant increase to the ATP 529P Contingent Resources to 308 petajoules or PJ (1C), 2,507 PJ (2C) and 5,314 PJ (3C). Refer to the Galilee ASX Announcement released Sept. 1.
Managing Director Peter Lansom said “The speed of the rig mobilization has been first rate and in line with our strategy of maximizing the value of our foundation asset ATP 529P. The rig was mobilized less than 3 weeks after completion of the ATP 529P acquisition and Galilee assuming operatorship of the project. The upcoming workovers and R1 coal seam test will be crucial in converting our recently expanded ATP 529P Contingent Resources into Reserves”.
Competent Person’s Statement
The estimates of contingent resource estimates were determined by Tim Hower, a full time employee of MHA Petroleum Consultants LLC., Denver, Colorado, USA, Sept. 1, in accordance with Petroleum Resources Management System guidelines. Tim Hower is a Licensed Petroleum Engineer in the State of Colorado, a qualified person as defined under the ASX Listing Rule 5.41 and has consented to the reporting of the contingent resource figures in the context and manner in which they appear in this announcement.
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