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.

The post Galilee (ASX:GLL) share price jumps on 'encouraging' gas results appeared first on The Motley Fool Australia.

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%.

The post What's going on with the Galilee Energy (ASX:GLL) share price? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are tumbling lower:

Galilee Energy Ltd (ASX: GLL)

The Galileee Energy share price is down 2.5% to 78 cents. This is despite a positive announcement by the oil and gas exploration company this morning relating to its Glenaras multi well pilot programme in the Galilee Basin. According to the release, following recent heavy rainfall, all council roads have now been re-opened and equipment and subcontractor mobilisations are currently underway.

Hansen Technologies Limited (ASX: HSN)

The Hansen share price is down 2% to $5.40 despite there being no news out of the company. However, with the billing technology company's shares up strongly this year, this decline could be due to profit taking. Prior to today, the Hansen share price was up almost 50% since the start of the year.

Polynovo Ltd (ASX: PNV)

The Polynovo share price has fallen 3.5% to $2.90. This also appears to have be a case of profit taking after some strong recent gains. After a 5% gain on Thursday, the medical device company's shares were up an impressive 28% in the space of just over two weeks. A further expansion in Europe and a deal with Premier Inc have supported its shares.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price has sunk over 7% to $6.37. Investors have been selling the telco's shares on Friday after the shock resignation of its Founder and Chairman, David Teoh. Mr Teoh revealed that he felt that "now would be the right time…to step aside and pursue other interests." Replacing Mr Teoh will be board member Canning Fok. David Teoh described Fok as "one of the most capable business leaders in the world."

The post Why Galilee Energy, Hansen, Polynovo, & TPG shares are tumbling lower appeared first on The Motley Fool Australia.

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.

The post Why the Galilee Energy (ASX:GLL) share price just rocketed 50% to a record high appeared first on The Motley Fool Australia.

The company's flagship exploration and development project is the Glengaras gas fields in the Galilee Basin of Queensland possess one of the largest uncontracted gas resources on the east coast of Australia according to the company.

Galilee also reports that the east coast gas market is likely to remain undersupplied or "structurally short" over the medium term, which naturally means its Glengaras fields have a huge opportunity to supply the east coast market at rising prices.

While Galilee has an exciting story and some impressive reserves on paper at its 4,000 square kilometre Galilee Basin gas fields it posted zero revenue and a $3.06 million operating cash outflow for the quarter ending September 30, 2018.

The company recently raised $13 million at 60 cents per share via a placement to professional investors, with the funds being used to develop its gas tenements to proven reserves.

The $13 million raised is in addition to $7.5 million cash on hand as at September 30 2018, but gas exploration is a costly business, with the stock likely to remain volatile in 2019.

The post Why the Galilee Energy share price quadrupled in 2018 appeared first on The Motley Fool Australia.

In afternoon trade the oil and gas exploration and production company's shares are down 10% to 55 cents after it announced a $13 million placement to a new cornerstone investor and new and existing institutional and sophisticated investors at a price of 60 cents per share.

Management advised that the proceeds of the placement will be used on its forward exploration programme, specifically "to commence securing a rig and ordering long lead items in what is becoming a very tight market for both rigs and services, in addition to bolstering working capital."

Ultimately the major objective of the programme is to expand its knowledge of the Glenaras Project and progress its goal of converting a large portion of the project's Contingent Resource into Reserves as quickly as possible.

While a 10% decline today is disappointing for short term shareholders, those that have been holding Galilee Energy's shares since the start of the year won't mind so much.

Even after today's decline, since the start of 2018 the Galilee Energy share price has gained a remarkable 323%.

Why has the Galilee Energy share price more than quadrupled this year?

The catalyst for this gain is the enormous promise of its Glenaras Project in the Galilee Basin in Queensland.

According to the AFR, the basin is estimated to hold more than 8000 petajoules of gas resources, which is approximately 15x the annual east coast domestic gas consumption.

And while at this point the gas remains commercially unproven and stranded from the east coast gas grid network, management believes the Jemena pipeline option provides it with a clear path to market.

The company's managing director certainly knows what he's talking about. He was formerly in charge of Eastern Star Gas which was sold to Santos Ltd (ASX: STO) for $900 million after booking 1520 PJ 2P reserve.

Should you invest?

Given the potential of this project and the growing demand for supply on the east coast, Galilee Energy is one to watch in my opinion.

However, unless you have a high tolerance for risk, I would suggest you stick with the bigger players such as Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) if you want exposure to oil and gas.

The post Why the Galilee Energy share price is up 323% in 2018 appeared first on The Motley Fool Australia.