Galilee Energy is to focus on developing its Australian coalbed methane (CBM; called coal seam gas in Australia) assets after disappointing results from its US drilling programme.
In a statement, the company said that it had been advised by the operator of the Hoffer A1 well in Lavaca County, Texas, that drilling and logging operations had been completed and found no significant production potential. The operator has subsequently decided to plug and abandon the well.
As a result, Galilee is suspending any future US investment until a strategic review of its portfolio and operating costs has been undertaken.
In the meantime, the company will focus on progressing its Glenaras Gas Project (GGP) in the Galilee Basin in Queensland, Australia.
“The strategic review and focus on Glenaras is a strong message that we will be pro-active in addressing the deteriorating global oil and gas equity market conditions,” said Dr David King, Chairman of Galilee. “We are seeing increasing interest from a variety of parties in the potential of the Glenaras Gas Project and we are focusing on translating this into shareholder value.”
“Whilst it is still early, the R1 coal seam test is progressing and will be crucial in converting our recently expanded contingent resources into commercial reserves,” concluded King.
R1 coal seam production testing is underway at the Glenaras Gas Project with initial results expected in early 2016. The project is targeting supply of gas into the structurally undersupplied east coast market.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/cbm/11122015/galilee-to-focus-on-queensland-cbm-project-3267/