Galilee Energy Spuds Gulf Coast Well, Targets 13.7 BCF

Galilee Energy (ASX:GLL) has moved the drilling derrick into position over the well centre in Louisiana. The Zydeco-1 well, the company's first under its new U.S. Gulf Coast fairway strategy, is entering final rig-up, with spud expected next week, CEO Joseph Graham said Tuesday.

"The rig is on location, the derrick is standing over the well centre, and the team is now completing the last checks before drilling begins," Graham said in a statement. He added that every pre-drilling milestone – geological evaluation, lease acquisition, surveying, permitting, well design, site construction, rig mobilisation – has been delivered on schedule and within budget.

Zydeco-1 targets a conventional gas-condensate accumulation identified through modern geological interpretation and supported by 3D seismic data. The un-risked prospective resource is up to 13.7 billion cubic feet of gas and 610,000 barrels of condensate. That figure, roughly equivalent to 3.2 hours of total U.S. dry gas production, would not move the needle for a major producer. For a micro-cap explorer like Galilee, it is a company-making target if successful.

The company said existing regional infrastructure in the Gulf Coast provides a clear pathway to rapid commercialisation. First production could begin within approximately six months of drilling success, Graham said. Zydeco-1 will test a range of objectives within a proven fairway, meaning multiple zones could contribute even if the primary target underperforms.