About Us
Galilee Energy Limited (Galilee) plans to grow as an energy company with particular emphasis on developing its coal seam gas (CSG) projects in Queensland’s Galilee Basin held through subsidiary, Galilee Resources Limited.
Galilee provides investors with good value entry into coal seam gas. The Galilee projects in central Queensland present opportunities in the rapidly emerging CSG industry in Queensland as the company moves towards certification of gas reserves.
In a major advance towards project development, AGL Energy Limited, one of Australia’s leading energy companies, agreed in July 2008 to invest $37 million in one of Galilee's CSG tenements. The farm-in agreement will see AGL taking up a 50 per cent interest in ATP 529P, located 80km north-west of the Barcaldine gas fired power station which is linked by a gas pipeline to Moomba and Brisbane.
Galilee and AGL have agreed to a work programme with AGL as the operator of the joint venture, and have signed a 10-year gas marketing agreement. The two-stage work programme comprises the Glenaras production pilot, which commenced early stages of dewatering in late 2009, and, as a second stage, exploration and appraisal work.
As a large and experienced integrated energy company, AGL brings to the joint venture both capital and expertise in gas exploration, development, production and marketing.
ATP 529P is one of two tenements, both highly prospective for CSG, held by Galilee in the Galilee Basin. The gas in place in the two ATP’s is estimated to be greater than 20 TCF.*
*JR Holland & Associates
Galilee also plans to focus on further exploration and development in the adjacent tenement, ATP 799P. A exploration programme of 150km of 2D seismic acquisition and 2 core holes was undertaken late 2009/early 2010 and a 4 year Later Work Programme was submitted in February 2010 comprising additional core holes, further seismic and water management studies.
In coal, Galilee's subsidiary, Eastern Coal Holdings (NZ) Ltd (Eastern) is well established as a significant producer in the South Island of New Zealand, supplying domestic industrial customers from two mines, Cascade near Westport and Takitimu in the far south, and a coal blending and distribution facility at Timaru.
In September 2008, the Company commenced coal deliveries from Takitimu to the Clandeboye plant of large dairy products producer Fonterra. The contract to supply up to 130,000 tonnes of coal per year resulted in a near doubling of the Company's New Zealand coal production and sales.
Recent infrastructure upgrades at the Takitimu mine and further resource drilling in surrounding areas will enable Eastern to expand operations through 2010 to increase production capability.
A work programme has been submitted to the Department of Crown Minerals for the next stage of development of the company’s export coking and thermal coal prospect at Whareatea West, on the Denniston Plateau near Westport.
Expansion strategy
The Company’s growth stems from the leadership of experienced industry directors and management, the support of knowledgeable shareholders and proven production capabilities, coupled with a strong financial base.
Galilee plans to expand as an energy company with a focus on joint ventures and other relationships with established resources professionals who can add their particular expertise to develop the Company’s projects.