Galilee Energy Limited : - Glenaras Gas Pilot, Highest Recorded Gas Rate

Galilee Energy Limited (ASX: GLL) ('Galilee') is pleased to provide an update on the Glenaras Gas Project in the Galilee Basin in Queensland.

The Glenaras Gas Project ('Project') is located in ATP 2019, which is 100% owned and operated by Galilee. The Permit covers an area of approximately 3,200 km2.

The Project has one of the largest contingent gas resources on the east coast and is strongly positioned to supply the AEMO's forecast eastern Australian domestic market gas shortfall in the early 2020's. The Project's independently derived and certified Contingent Resource within the Betts Creek coals are 1C of 308 PJ, 2C of 2,508 PJ and 3C of 5,314 PJ, which represents sufficient gas supply to fulfil approximately 25% of eastern Australian domestic market needs for over 30 years (3C Contingent Resource at 650 PJ/year).

Glenaras Pilot Enhancement Programme

Each of the eleven wells at the Glenaras multi-well pilot ('Pilot') are now on continuous production. Since the commencement of production from the new vertical wells, there has been demonstrable gas production through the water line system. To enable us to quantify this additional gas production, a separator has recently been installed in these lines to separate and measure this incremental gas volume. The metered gas rate, measured using an Accelabar flowmeter, has reached a daily average of 50 Mscfd in aggregate representing the highest recorded gas rate thus far at the Pilot.

Water rates from the lateral wells have continued to decline and are now at 4,600 BWPD, which is a clear indication of pressure depletion in the central area of the Pilot. The water rates from the additional six wells are exceeding the estimated rates from the recent Schlumberger reservoir modelling which bodes well for achieving the Pilot's intended objective of accelerating the depressurisation process and achieving commercial gas flow rates. The total water rate from all eleven wells at the Pilot is 14,300 BWPD. We expect to see an increase in this gas rate in the coming weeks/months as we lower the reservoir pressure within the Pilot area below the critical desorption pressure and will keep the market informed of significant changes.

Contact:

Peter Lansom

Tel: [phone]

About Galilee

Galilee Energy is focused on creating a high value 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 and Bowen Basins whilst looking to add further high quality acreage to its portfolio

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