Galilee Energy upgrades CBM contingent resource estimation in Galilee Basin

Galilee Energy Ltd upgrades its coalbed methane (CBM) contingent resource estimation at ATP 529P located within the Galilee Basin in Queensland.

The 2015 contingent resource estimation completed by MHA Petroleum Consultants LLC (MHA) covers a significantly larger area than previously assessed, due to the step out drilling and pilot production testing completed in the permit. This includes data from eight step out wells as well as the pilot and pressure monitoring data from the Glenaras Pilot production completed subsequent to the 2011 SRK Consulting Report – this greatly increases the project area.

MHA have attributed the increase in the contingent resources to Galilee’s net equity interest (being 100%) in ATP 529P using the deterministic method to prepare the estimates of the contingent resources as at 31 August 2015.

The updated ATP 529P 2015 contingent resource estimation increases contingent resources by 868% (2C) and 388% (3C).

Galilee intends to expedite the R1 coal seam test program at ATP 529P. The R1 coal seam test will target the production potential of the uppermost R1 coal seam, allowing pressure drawdown of the coal without any contribution from neighbouring sands. Testing is planned to commence early in 4Q15.

Managing Director, Peter Lansom, stated: “the ATP 529P resource upgrade highlights its significant potential to become an economic gas supplier into the Australian east coast gas market. The larger resource greatly improves the projects economics and feasibility as a high-quality gas supplier to meet the forecasted east coast gas shortage.”

Edited from press release by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/cbm/01092015/galilee-energy-upgrades-its-cbm-contingent-resource-estimation-in-the-galilee-basin-2796/