Galilee Resources Limited
- Exploring for coal seam methane and petroleum in the Galilee Basin of central Queensland
- The Galilee Basin contains extensive coal measures
- In joint venture with AGL Energy Limited, a leading Australian energy company
- Area also prospective for conventional petroleum
Galilee holds exploration permits ATP 529P and ATP 799P in central Queensland. The tenements combined cover an area of approximately 8,700 square kilometres and are located 80km northwest of the Barcaldine gas-fired power station which has a gas pipeline connection to Moomba and Brisbane.
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In January 2005 a comprehensive technical review was completed by an independent expert confirming the prospectivity of these leases for coal seam methane and conventional petroleum. In July 2007 an additional exploration hole was drilled in the Rodney Creek area in the southern part of tenement ATP 529P. Following encouraging test results, Galilee developed plans to drill a 5 spot production pilot and further exploration wells in and around the Rodney Creek area aimed at establishing a commercial CSG resource.
In July 2008, a $37 million investment by AGL Energy Limited in the project was announced.
Under a farmin agreement AGL has acquired 50% of ATP 529P.
AGL is providing the capital to build on Galilee Energy’s exploration and test work. As one of Australia’s leading integrated energy companies, AGL is also bringing to the project its expertise in exploration, development, production and marketing.
AGL is the operator is conducting a two stage programme under a Joint Operating Agreement. Stage 1 involves Glenaras production pilot in ATP 529P, and Stage 2 is an exploration and appraisal work program. The parties have also entered into a 10 year gas marketing agreement.
Consultants JR Holland & Associates concluded in a preliminary Exploration & Well Completion Report for the Rodney Creek 8 well in ATP 529P that
- the gas resource is substantial
- is characterised by 24 metres of gassy coal measures (considered thick enough to enable coal seam gas production)
- coal seams are dull, low in ash and exhibit strong cleating (fracturing), and
- gas composition is of pipeline quality with 97-98% methane.
The two tenement areas have a Gas in Place estimate of >20TCF based on the observed coal thicknesses and the measured gas contents of the coals in Rodney Creek 8.
With AGL engaged in ATP 529P, Galilee will focus on further exploration and development in ATP 799P. In late 2009/early 2010 an exploration programme was undertaken in the tenement comprising 150km of 2D seismic acquisition and two core holes. In February a Later Work Programme was submitted for further core holes and seismic acquisition over a 4 year period. A relinquishment was also submitted for 33.3% of the tenement.
Presentations
| Galilee Basin Conference November 2009 |
| Investor Presentation May 2009 |
| Galilee Energy Shareholder Presentation |
Conventional Petroleum
Expert advice suggests that the Galilee area is also prospective for conventional hydrocarbons. Further studies to this effect will be undertaken once the current CSG exploration programmes have been completed.
A total of six petroleum exploration and two deep stratigraphic wells have previously been drilled within the permit areas. Most encountered significant hydrocarbon shows and minor oil and gas recoveries have been made from subsequent testing. Other petroleum wells to the south, east and west of these permits have also encountered significant hydrocarbon shows.