Galilee shares are trading close to 5% higher at 85 cents per share, up 124% this past year.
Galilee is a Brisbane-based energy company engaged in exploring and developing coal seam gas in the Galilee Basin near Longreach in Queensland. It also has gas exploration activities in the USA and Chile.
Galilee’s gas operation results
The gas producer reported positive pilot water production results, pumping out 19,000 barrels of water per day at its 100% owned Glenaras multi-well pilot project.
Galilee is utilising a pump enhancement workover programme (PEP) to increase water production. Although it’s still not 100% operational, it’s already reportedly increased the water rate by 30%. The PEP works by installing larger capacity well pumps, among other improvements.
The company says that despite the “early stage of production optimisation”, its aggregate natural gas rate from the Glenaras pilot program is increasing and is currently at over 60 thousand standard cubic feet per day. This is a 20% increase in production over the last reporting period for the program.
Galilee pumping the gas
Today’s report is a welcome update for investors and the Galilee share price. The company has been working ahead of schedule after its shares fell last month on news that these pump update works would shut down its well operations until mid-May.
Galilee also noted that gas production is now underway across three different vertical wells. The company noted that these results were all “encouraging given that not all wells are fully commissioned or at maximum drawdown yet.”
Galilee is now planning to steadily increase its pumping rates at all six vertical wells in the Glenaras project to maximise drawdown rates.
The company says its second pivot irrigation system, “an important component of the requisite water handling capacity”, has also been successfully commissioned and is now fully operational.
Galilee share price snapshot
The Galilee share price boomed a whopping 50% on its last positive Glenaras gas project update on 26 March.
The company has been a solid gainer over the past 12 months. However, despite the Coalition government’s promise of a gas-led economic recovery, the Galilee share price is still well down on its 2019 highs of over $1.25 per share.