Galilee Energy Limited provides an update on production operations at the Glenaras multi-lateral pilot programme.

As previously announced, the Glenaras multi-lateral pilot is on continuous production and demonstrating excellent water rates with both wells flowing water rates of approximately 3,500 BWPD in aggregate. Both wells are now flowing below the critical desorption pressure and the water flow rates are starting to level off as gas desorption begins. The casing pressure has built up in both wells indicating gas is beginning to be produced from the coal. Glenaras 10L is now being redirected through a separator and is producing gas at a rate too small to measure. Glenaras 12L will be redirected through a separator in the coming weeks. Gas rates will continue to increase as fluid levels in the wells are reduced further and more coal area is drawn down below the critical desorption pressure.

There is still strong evidence of direct communication between each of the lateral wells which is enhancing pressure drawdown in the pilot area.

“The results so far are excellent and to see the pilot commencing first gas production is a great step forward. We are still a few weeks away from full drawdown of the coal and further months to drawdown an area sufficient to achieve our target of first commercial gas rates. So far the coal and pilot are performing above expectation and we look forward to the coming weeks as gas production ramps up.” Managing Director Peter Lansom stated.

The pilot will be on production for an extended period to de-water and lower the pressure in the surrounding coal to achieve a commercial gas flow.