Galilee Energy Limited (ASX:GLL) ('Galilee') was officially granted operatorship and 100% working interest of Kumbarilla, effective 1st August 2019 for a term of 6 years.

The acreage was made available for tender as part of the Queensland Government's 2019 release of new petroleum resource areas, designed to stimulate oil and gas exploration in Queensland and provide sustainable benefits to local communities and the broader Queensland economy.

Kumbarilla is a 384km2 , high-quality, exploration tenure with dual prospectivity in both the world-class Walloon Subgroup coal seam gas ('CSG') fairway and the oil and gas prone eastern flank of the Taroom Trough in the Bowen basin. A total of 504 PJ of CSG 2C Contingent Gas Resource+ has been independently certified in the Walloon Subgroup as at 1 st August 2019 by MHA Petroleum Consultants ('MHA'), as per industry standard guidelines, validating Kumbarilla's material prospectivity and significant value.

Initial drilling at Kumbarilla has been accelerated more than one year ahead of schedule with 3 coreholes planned to be drilled in Q1 2020. These wells will exclusively target the interpreted Walloon Subgroup CSG 'sweet spot', where prospectivity is interpreted to be highest. Each core-hole will acquire core across the complete 300m of Jurassic coal-bearing stratigraphy with extensive formation and flow testing. This initial program will provide early definition of the CSG potential at Kumbarilla and support additional acceleration of the subsequent exploration program and in turn, fast-track maturation of the Contingent Resource base to Reserves ahead of schedule.

All landholder approvals have been secured for the core-hole program with lease preparation due to commence shortly in readiness for drilling Q1 2020. Contract negotiations with the preferred rig company are well progressed.

In addition to the accelerated core-hole program, 667 km of 2D regional seismic reprocessing is also nearing completion. Earth Signal Processing Ltd will deliver final data shortly for the initial subsurface mapping to be completed by end 2019, providing the most complete and advanced visualisation to-date of Kumbarilla's considerable prospectivity. This high-quality, re-imaged seismic data is designed to highlight multiple key subsurface elements, including the extent of fracture-enhanced permeability in the Walloon Subgroup, the likely presence of structural and stratigraphic oil and gas traps and the distribution of hydrocarbon-bearing reservoirs.

The combination of the accelerated core-hole program and the extensive seismic reprocessing will enable Galilee to continue fast-tracking the Kumbarilla project towards the maturation of material Reserves. This focused approach, combined with Galilee management's extensive Surat and Bowen basin experience and Kumbarilla's close proximity (less than 10km) to existing production facilities, will further enhance the likelihood of the project's success.

Galilee Managing Director Peter Lansom stated, 'Acceleration of the exploration program by more than twelve months reaffirms Galilee's confidence in the prospectivity of the Kumbarilla project and the company's drive to deliver material CSG and conventional oil and gas reserves to a structurally short east coast gas market. Acquiring early, high-quality core and seismic data is integral to fast-tracking success and is consistent with Galilee's approach to each of its exploration assets.'

Contact:

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