Galaxy Energy Begins Drilling Program in Piceance Basin

Galaxy Energy updates its drilling activities underway in the Piceance Basin natural gas development project. The Company, through its wholly owned subsidiary, Dolphin Energy Corporation in partnership with Exxel Energy Corporation, controls approximately 6,000 undeveloped acres in the Piceance Basin.

The Company reported that gas production and sales continue from the Clough RWF 14-13, a well drilled and operated by Williams Production RMT Company, in which Dolphin acquired a 5.66% working interest after Williams drilled and completed the well. Galaxy, through Dolphin, also owns an 8.33% interest in a well operated by Antero Resources Company which is now in the completion process following six stages of fracture treatment stimulations. When fully completed and tested, a potential test will be announced for this well. Most importantly, the Dolphin/Exxel joint venture has commenced drilling the first two wells of a planned continuous drilling program in the area. Dolphin owns a 25% working interest in each of these two new wells.

Marc Bruner, Galaxy's Chairman and CEO commented, "We are committed to maintaining a continuous drilling program in the area. Additional surveying and permitting operations are currently underway on other well locations in order to maintain our drilling momentum."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.