Galilee Energy : Glenaras Gas Pilot – Operations Update 14 April 2021

ASX/MEDIA ANNOUNCEMENT

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Glenaras Gas Pilot - Operations Update

14 April 2021

• Glenaras pilot pump enhancement programme (PEP) on track despite recent wet weather.
• Three of the six vertical well workovers have been completed and brought back on production. Water production rates from these new pumps will be ramped up over the coming weeks.
• All major power generation upgrade activities to handle larger pumps have been completed.
• Progress on second pivot irrigation system to process increased water rates well underway with commissioning expected by end of April.

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

Pump Enhancement Programme (PEP)

As previously advised, a pump enhancement programme is underway at the Pilot. This programme includes workovers in all six of the vertical wells (see Figure 1) to optimise the production performance in these outer wells and accelerate the process of achieving commercial gas production. The decision has also been made to take advantage of the rig being mobilised to site and conduct a workover on Glenaras 10L to replace the downhole pump in this well.

Excellent progress has been made on all aspects of the PEP with progress tracking to schedule. The first facet of the programme was the upgrade to the power generation system. All work on upgrading the power distribution board to accommodate the new larger horsepower pumps has been successfully completed. Upgraded cabling to the vertical wells has also been significantly progressed.

Workover activity has been completed safely and within budget on the first three wells of the six well programme; Glenaras 19, 20 and 21. Encouragingly no sediment or fill was encountered and as a result there is no need for further clean-out activities which augurs well for longer term pump reliability.

ASX/MEDIA ANNOUNCEMENT

The new larger capacity pumps at each of the above three wells have been commissioned and brought back online. Water production at these three wells is still being progressively ramped up and total Pilot water production is already back to previously reported rates. The PEP is targeting an increase of over 30% in total Pilot water production to ~18,000 BWPD which is expected to have a marked impact on the Pilot.

Progress on site has not been materially impacted from recent wet weather events in the Longreach region as all equipment had been previously mobilised to site.

As previously advised, rig related works will extend through to mid-May with several wells required to be shut in during this period. However each of the wells will be progressively re-commissioned throughout the campaign.

Further operational updates will be provided to the market as progress is made on the PEP and as wells are brought back online.

Figure 1 - New vertical well locations.

Additional Pivot Irrigation System

Excellent progress has been made on the second pivot irrigation system, with forecast completion by the end of April. This second irrigation system provides sufficient capacity to enable the handling of additional water volumes resulting from the PEP.

The Company is continuing to assess different crop types and yields to optimise longer term development plans.

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ASX/MEDIA ANNOUNCEMENT

For further information contact:

Peter Lansom Managing Director Galilee Energy Limited [phone]

ACN:064 957 419

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.

This announcement was released with the authority of the Board.

Directors

Chairman - Ray Shorrocks

Managing Director - Peter Lansom

Non-Executive Director - Dr David King

Non-Executive Director - Stephen Kelemen

Non-Executive Director - Gordon Grieve

Non-Executive Director - Greg Columbus

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