Galilee Raises Funds for Oz CBM Project

Australia’s Galilee Energy has raised A$5.6mn ($4.1mn) via share placement to assist in progressing the Glenaras gas project in Queensland and to meet all other general working capital expenses, it said July 10.

“The company is now in a very strong financial position and, subject to continued strong performance of the pilot wells, is well positioned to progress the Glenaras gas project though to its maiden reserve booking,” Galilee managing director Peter Lansom said.

Providing update on the project, Galilee said that Glenaras multi-lateral pilot is on continuous production and demonstrating excellent water rates. “The results so far are extremely encouraging, with the water rates at the upper end of our pre-drill expectations. We have seen pressure drawdown in the monitoring well and the communication between the lateral wells is direct evidence of the reservoir shielding that we were anticipating.” Lansom stated.

The pilot will be on production for an extended period to de-water and lower the pressure in the surrounding coal to achieve gas flow, Galilee said. The Glenaras gas project is contained within ATP 2019 (formerly ATP 529) in the western portion of the Galilee basin in Queensland. The project was designed to evaluate the quantity and quality of coalbed methane (CBM) in the Galilee basin Betts Creek and Aramac coalbeds, according to Galilee.