Galaxy Spuds Three New CBM Wells in Wyoming

Galaxy Energy Corporation's subsidiary Dolphin Energy has increased its working interest in its coalbed methane (CBM) properties near Sheridan, Wyoming. Also, the company has completed drilling operations for the nineteenth well on its leases near Leiter, Wyoming, and commenced drilling activities for three additional wells.

Galaxy, through its subsidiary Dolphin Energy, has acquired an additional 35% working interest in approximately 3200 acres at the Buffalo Run prospect. This boosts the company's working interest to 100% on this portion of the property, giving it 100% working interest in the 44 existing wells that are located on the property. Additionally, the company has acquired another 26% working interest in approximately 323 acres of the Buffalo Run East lands. The acquisition price for the additional working interests on both properties was $592,500.

On March 26, the company initiated drilling and subsequently set 7" production casing in three additional CBM wells on its leases located near Leiter, Wyoming. The three new wells are the Little 13P-19, 15 P-19 and 1 P-30. These wells are part of the nineteen Leiter field development well that began earlier this year by Dolphin Energy with Continental Industries as its operator.

"We are very pleased with the progress of our operations in Wyoming thus far," said Cecil Gritz, Galaxy's Chief Operating Officer. "We anticipate drilling and completion activities in Wyoming to continue at a similar pace throughout the spring and summer. We have staked 44 new well locations on our Pipeline Ridge prospect, near Sheridan, and barring any major delays we look forward to commencing drilling operations on these wells within the next 60 days."