Galilee Energy Ltd. (ASX: GLL) shares are edging lower in late morning trade. At the time of writing, the Galilee Energy share price is trading 0.6% lower at 74 cents.
Below we take a look at the ASX energy share's latest operations update.
What update did Galilee report?
The Galilee Energy share price is edging lower after the company released an operations update for its 100% owned Glenaras gas pilot program in Queensland's Galilee Basin.
That's a different market reaction from the last time the company provide an update at its Glenaras gas project on 26 March, when shares soared more than 50% during intraday trading.
The program involves upgrades – including larger, higher horsepower pumps – to all 6 of the vertical wells, intended to speed the process towards commercial gas production at Glenaras.
In today's update on its pump enhancement program (PEP), Galilee reported that the program was running on schedule despite the recent rainfall. Three out of the 6 vertical well upgrades are now complete and those wells are back on production. The company intends to increase the water production rates from the new pumps over the next weeks.
There were no sediment or fill issues encountered, negating the need for additional clean-out activities. Galilee said this "augurs well for longer term pump reliability".
The new, larger pumps required power generation upgrades. Galilee reported that all these upgrades have been completed. It also reported that "progress on a second pivot irrigation system to process increased water rates is well underway". It expects commissioning to occur by end of April.
With rig related works continuing until mid-May, the company advised that several wells will be shut during that time. Pumps will progressively come back online throughout the program.
Galilee Energy share price snapshot
The Galilee Energy share price is up 14% over the past 12 months. That trails the 31% gains posted by the All Ordinaries Index (ASX: XAO).
So far in 2021, Galilee Energy shares have gained 9%.
