Galaxy Energy Completes Initial Wells Tests on Glantal-1

Galaxy Energy, through its wholly owned subsidiary Pannonian International Ltd. (Pannonian), has completed drilling its initial test well, Glantal-1, located in southwest Germany. The Glantal-1 well was drilled as a directional well to a total depth of 1,687 meters. The well is located on the company's 149,000 acre property Neues Bergland Exploration Permit near Kusel, Germany. Pannonian is the operator of a four-company joint venture group with a 24% working interest in the well and will act as the operator for the first three wells in Phase One and Two.

Based upon the initial review of open hole logs, several zones of interest exist. The Company indicated that based on initial well results it will undertake a detailed analysis to identify priority zones for further development. Accordingly, well operations have been temporarily suspended, during which time further detailed open hole log analyses will be completed.

Marc E. Bruner, CEO and President of Galaxy commented, "We intend to fully review the results of this initial well and test several zones of interest for further evaluation. The European market for natural gas is extremely favorable and the results of this initial well warrant a detailed evaluation for its production potential."

Galaxy Energy Corporation is an oil and gas exploration and production company focusing on acquiring and developing coalbed methane and other unconventional natural gas properties in Wyoming, Montana, Colorado and Europe.