What's going on with the Galilee Energy (ASX:GLL) share price?

The Galilee Energy share price isn't making the same big moves as it did following the ASX energy share's last Glenaras project update.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published April 14, 2021 11:50 am AEST

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.

oil drill in sunset — Image source: Getty Images

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%.

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