Galilee Energy : Glenaras Gas Project – Gas Production 23 September 2019

ASX/MEDIA ANNOUNCEMENT

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Glenaras Gas Project - Gas Production

23 September 2019

Highlights

• Measured gas flow from Glenaras Gas Project - currently 15-20 Mscfd in aggregate and steadily increasing.
• All five lateral wells are on continuous production and performing strongly.
• Water rates continuing to level off as gas production increases.
• Production will continue to be ramped up over the coming weeks to achieve full reservoir drawdown.

Galilee Energy Limited (ASX:GLL) ("Galilee") is pleased to provide an update on the 100% owned and operated Glenaras multi-lateral pilot programme ("Pilot") in the Galilee Basin ATP 2019.

Metered gas rates, measured via orifice plate meters at each well, are currently 15-20 Mscfd in aggregate, with gas rates continuing to increase as fluid levels in the wells are reduced further and more coal area is drawn down below the critical desorption pressure.

As previously announced, the Glenaras multi-lateral pilot is on continuous production and demonstrating excellent water rates, with the wells flowing water rates of approximately 6400 BWPD in aggregate. All wells are now flowing below the critical desorption pressure and the water flow rates are starting to level off as gas desorption begins.

Galilee Managing Director Peter Lansom stated, "These measurable gas flows are a significant milestone in the Glenaras Gas Project. The Pilot is progressing extremely well and I'm looking forward to seeing the increased drawdown of the coal and gas production ramping up over the ensuing months."

The pilot will be on production for an extended period to de-water and lower the pressure in the surrounding coal to achieve a commercial gas flow.

Further operational updates will be provided to the market throughout this period.

ASX/MEDIA ANNOUNCEMENT

Figure 1 - Enhanced multi-lateral programme.

For further information contact:

Peter Lansom Managing Director Galilee Energy Limited [phone]

[e-mail]

ACN:064 957 419

About Galilee

Galilee Energy is focused on creating a mid-tier exploration and production company building on its core strengths in coal seam gas appraisal and development. Its primary area of focus is Queensland where it is appraising the Galilee Basin and exploring in the Surat Basin whilst looking to add further high quality acreage to its portfolio.

Directors

Chairman - Ray Shorrocks

Managing Director - Peter Lansom

Non-Executive Director - Dr David King

Non-Executive Director - Stephen Kelemen

Non-Executive Director - Gordon Grieve

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