Galaxy Energy Acquires Stake in 63 Gas Wells in Wyoming

Galaxy Energy Corporation's subsidiary, Dolphin Energy, has increased its working interest participation by an average 50% in approximately 8,950 gross acres on the Pipeline Ridge, Buffalo Run East & West, Horse Hill, and Dutch Creek coalbed methane (CBM) properties near Sheridan, Wyoming.

The acquisition boosts the company's working interest to near 100% in approximately 12,000 gross acres and includes 63 wells that are in various stages of drilling, completion, and connection to infrastructure facilities. The acquisition price for the additional working interest was $300,000 cash and 360,000 shares of restricted stock.

Dolphin has completed drilling operations for the Little 5P-30, the twentieth well on its Leiter Estate mineral leases near Leiter, Wyoming. One additional well, the Tietjen 15P-8, was commenced on 1200+ acres that were recently acquired near the Leiter Estate leases.

Two new wells, the Kingsbury 15C-3 and the Tinsley 1C-10, have been commenced in the Pipeline Ridge area. Nine additional well locations have been staked on the Pipeline Ridge leases, and drilling permits are in process of being obtained for these wells.

Elsewhere in the Powder River Basin, Dolphin has tendered payments of $1,687,500 and $47,500, respectively, to earn an assignment of its 12.5% working interest in approximately 206,000 gross acres, and its 25% working interest in approximately 26,600 additional acres in Montana. Galaxy Energy Corporation is in the business of oil and gas exploration and production and is currently acquiring and developing coalbed methane (CBM) and other unconventional and conventional natural gas properties in Wyoming, Montana, Texas and Europe.