Galilee Energy (ASX: GLL) is about to kick off a six week gas drilling program in the Galilee Basin of western Queensland. This drill campaign adds to the existing gas output of Galilee’s flagship Glenaras project.

According to Non-Executive Chairman, Ray Shorrocks, the asset has a large contingent resource of high quality gas that could supply the whole of eastern Australia with gas for continual use.

This is a timely project. In the coming 3 years, demand for gas is expected to outpace supply. 

“The expected gas from this project should meet the market shortfall we’re expecting to see between 2020 to 2023,” says Ray.

With the increased gas flow, Ray expects that the project will go from a resource to a reserve over the next few months.

The company will start drilling in mid-September, followed by commissioning wells and infrastructure and digging water. Once the water has been dug, Galilee expects to see gas production increase from 40 thousand cubic feet (MCF) to at least 100 MCF per day.

“We have a really low cost development. So with the Glenaras project, we’ve got $22 million in the bank. We’ve got sufficient balance sheet strength to see through this pilot. The project is well capitalised,” says Ray.

Today Galilee Energy’s Chairman Ray Shorrocks  joined us for our ‘Meet The CEO’ Live Investor Briefing. You can watch a recording of the session below, or you can click here to book into our next ‘Meet the CEOs ‘ session.

Recorded 26 August 2020 at 12pm.