Galilee attracts interest in one of the largest uncontracted gas resources on Australia’s East Coast
Special Report: Galilee Energy recently opened a data room for one of the largest uncontracted gas resources on the Australia’s East Coast to parties interested in potential investment.
Galilee Energy (ASX:GLL) has revealed that a number of industry participants are currently evaluating its Glenaras gas project in Queensland for potential investment as the company looks to strengthen its advance towards commercialisation.
The emerging gas producer is working to advance the Glenaras pilot into the final stages of achieving commercial gas rates and maturing the material independently certified 3C contingent resource of more than 5,000 petajoules.
Significantly, the latest data from the pilot has confirmed that the coals are now approaching the critical desorption pressure required for material gas rates to result.
To achieve a more precise calibration of the reservoir modelling and conserve cash, Galilee has shut down a number of wells at the pilot, with two currently operational.
This is the first such calibration of the wells which were drilled in 2022 and is an important step towards validating the reservoir simulation model, which is currently in the final stages of being updated.
The integrated subsurface model is being updated with the extensive suite of contemporary pressure data and the recently acquired and interpreted Glenaras Pad 3D Seismic Survey.
Importantly, the survey has provided substantially increased resolution of the structural and stratigraphic architecture of the Betts Creek Beds.
Galilee has made several moves of late to strategically positioning itself to play a pivotal role in securing Australia’s energy future.
Just a couple of months ago, the company inked a non-binding memorandum of understanding with Energy Queensland, a State Government-owned corporation, for the supply of natural gas and to progress the development of a hydrogen facility.
The MoU outlines a framework to progress preliminary talks for the supply of natural gas to the Barcaldine Power Station and lays the groundwork for a potential joint venture in developing a hydrogen facility at the central west Queensland site.
The Australian government values the untapped gas potential of the North Bowen and Galilee basins at up to $2.5 billion a year, with the ability to deliver up to 5,500 jobs by 2030.
The two basins are extremely gas rich, with an estimated 17,661 petajoules of gas in place –enough to supply the entire east coast gas market for around 10 years. But annual gas production right now is only around 9 petajoules.
Galilee has also completed its submission to the Queensland Government’s Frontier Gas Exploration Program, under which $21m in grant funding is available “to explore and unlock new reserves in the Bowen and Galilee Basins and bring Queensland gas to market sooner”.
The development of new gas supply is crucial for energy security and will continue to play an important role in underpinning the reliability of the electricity market as Queensland works towards a 70% renewable energy target by 2032.
Galilee Energy is of course well placed to assist in this regard with one of the largest uncontracted gas resources in eastern Australia.
This article was developed in collaboration with Galilee Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.