Galaxy Energy Commences Drilling Operations in Wyoming

Galaxy Energy has commenced drilling operations on its coalbed methane (CBM) leases near Leiter, Wyoming.

The Bumbaca 13P-25 well was spudded on February 3, 2004. The well will be drilled to a depth of 2,130 feet. A second CBM well, Perry 1P-25, is slated for spudding Feb. 5, 2004. These two wells mark the beginning of a continuous program to develop Galaxy's acreage in the Powder River Basin with Continental Industries of Casper, Wyoming, as its operator.

"We are very pleased to be spudding our initial wells," said Marc E. Bruner, chief executive officer of Galaxy Energy, "and we look forward to the ongoing development of our Powder River leases during 2004."