Why the Galilee Energy (ASX:GLL) share price just rocketed 50% to a record high

The Galilee Energy Ltd (ASX:GLL) share price rocketed as much as 50% higher to a new record high on Thursday. Here's why…

| More on:
rocketing asx share price represented by man riding golden dollar sign speeding through clouds

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Galilee Energy Ltd (ASX: GLL) share price has been a very strong performer on Thursday.

At one stage the coal seam gas exploration and production company's shares were up as much as 50% to a record high of 92 cents.

The Galilee Energy share price has since pulled back but remains a sizeable 20% higher at 73 cents.

Why is the Galilee Energy share price rocketing higher?

Investors have been scrambling to buy Galilee Energy shares on Thursday following the release of an update on its Glenaras Gas Project in the Galilee Basin in Queensland.

According to the release, the Glenaras multi-well pilot has reached 50 thousand standard cubic feet per day (mscfd). This is the highest measured gas rate thus far.

In addition to this, management advised that all eleven wells are on continuous production and performing strongly.

Another positive in the update is that water rates at the laterals have declined significantly from their peak rates. Pleasingly, they are continuing to decline as the company de-pressures the pilot area and gas production increases.

What is the Glenaras Gas Project?

The Glenaras Gas Project is located in ATP 2019, which is 100% owned and operated by Galilee. This permit covers an area of approximately 3,200 km squared.

The company notes that the project has one of the largest contingent gas resources on the east coast. It believes it is strongly positioned to supply the AEMO's forecast eastern Australian domestic market gas shortfall in the early 2020s.

But it won't stop there. The project's independently derived and certified contingent resource within the Betts Creek coals provide sufficient gas supply to fulfil approximately 25% of eastern Australian domestic market needs for over 30 years.

Today's gain means the Galilee Energy share price is now up a sizeable 30% since this time last year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Pointsbet, Qantas, Serko, and Yandal shares are pushing higher today

These shares are avoiding the market selloff today. But why?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best performing ASX 200 shares in October

Did you own the best performers on the index last month? Here they are.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors copped another rough session this Thursday.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Mineral Resources share price rockets 16% on $1.1 billion news!

ASX 200 investors appear thrilled with Mineral Resources' latest news.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Wednesday session for ASX investors today...

Read more »

Hiker man backpacker with hands up in the summer mountains with cloudy sky.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed anther positive session this Tuesday.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Firefly, Premier Investments, Serko, and Zip shares are roaring higher today

These shares are catching the eye with strong gains on Tuesday. But why are they rising?

Read more »