Galilee Energy Ltd

Galilee expanded the Zydeco-1 sidetrack to seven targets after identifying five shallow oil zones, with unrisked gross Prospective Resource of 317.0 kbbl (2U) and 422.6 kbbl (3U). Stafford has no resource attributed; Upper Tweedel remains the main target.

resource reserve update

Galilee has firm commitments to raise A$3.5M via 777.8M shares at A$0.0045, each with a free listed option, to fund the Zydeco-1 sidetrack. The price is below December's A$0.007. Directors' A$135,000 needs shareholder approval.

capital raising announcement

ASX directed Galilee to announce its capital raising status by 10 August; Galilee did not comply. The suspension therefore continues as an ASX-imposed suspension until ASX is satisfied the company meets the Listing Rules, including Rule 3.1.

listing compliance notice

Zydeco-1 drilling stopped at 9,393 ft when pipe became stuck, so Galilee plans a sidetrack from 2,760 ft to about 9,800 ft. The original hole showed Homeseeker B hydrocarbon indications and a new Stafford gas target. Tweedel is still untested.

drilling result

Galilee agreed to sell Galilee Resources, owner of the Glenaras gas project (ATP 2019), to Novus. It gets about A$1.34M of security deposits back, a possible A$500,000 deferred payment and a 2% royalty. The buyer takes on funding and rehabilitation obligations, ending Galilee's Queensland gas holding.

asset acquisition disposition

At Galilee's request, ASX suspended its shares pending a Zydeco-1 exploration update, following a 27 July trading halt. The company says the early data has positive indications but also well-drilling issues that may change the drilling program.

listing compliance notice

Zydeco-1 in Louisiana spudded (drilling began), on schedule and budget, as Galilee's first US Gulf Coast well. It targets up to 13.7 bcf gas and 610,000 bbl condensate. The next material update is due after electric logging, flagged for August 2026.

drilling spud

Galilee signed a fixed-price drilling contract with RFC Drilling for Rig 103 and received state approval. Zydeco-1 is confirmed to spud in the first week of July 2026, to about 10,000 feet. That is a slip from the earlier 2Q target, and it replaces the previously preferred Rig 14.

contract award

Galilee appointed a four-member US Advisory Board, including Cleve Thomas as US Country Manager, to help build a US-focused, cash-flow oil and gas business after Zydeco. Zydeco-1 is still on track to spud in 2Q 2026.

director officer appointment

December quarter: shareholders approved the Zydeco acquisition and the A$6.5M raise on 27 January 2026. Cash was A$2.93M at 31 December. Glenaras wells remain offline, and Springsure (ATP 2050) was relinquished, ending the farm-out effort.

quarterly activities report

Following the Zydeco deal, Joseph Graham becomes managing director and Eduardo Robaina (chairman) and Dale Hanna join the board. Ray Shorrocks, Greg Columbus and Stephen Kelemen resigned, replacing the long-standing board.

director officer appointment

Galilee has an option to buy Minerals U, holder of the Zydeco gas project in Louisiana (325 acres), for 175M shares plus a 5-10% royalty, subject to shareholder approval. It also raised A$6.5M at A$0.007 per share, with free options. A shift from Queensland.

asset acquisition disposition

Galilee requested a voluntary suspension of its shares, following a trading halt on 26 November. It said it was finalising a material capital raising and acquisition, expected to be announced by 1 December.

other

Joseph Graham, formerly CEO of Kato Energy, was appointed CEO on a 12-month contract at A$203,400 fixed pay. Ray Shorrocks steps back to non-executive chairman, filling the CEO gap open since David Casey left in December 2023.

director officer appointment

Galilee signed a technology licence with Novus to seek ways to improve Glenaras drainage, paying A$300,000 a month for an initial four months plus five seconded staff. It also placed 166.7M shares at A$0.006 to raise A$1.0M, with directors taking A$0.2M subject to approval.

material agreement

Galilee and Vintage mutually terminated the Scheme Implementation Deed signed in October. After extensive discussions, the scheme was no longer believed to be in either company's shareholders' best interests, and the parties could not agree revised terms.

material agreement termination

Galilee and Vintage signed a binding Scheme Implementation Deed, converting the August Heads of Agreement: 2 Vintage shares per Galilee share, with Galilee holders owning about 40% of the merged group. Board unanimously recommends, subject to an independent expert and no superior proposal.

business combination

Entitlement offer completed: 173.4M new shares issued at A$0.012, raising about A$2.08M, with Canaccord taking up 115.3M shares (A$1.38M) as underwriter. This meets the raising condition of the Vintage merger, which Galilee says is to be voted on later this year.

capital raising announcement

Galilee signed a binding Heads of Agreement for Vintage Energy to acquire 100% via scheme of arrangement: 2 Vintage shares per Galilee share, implying A$0.02. Galilee holders would own about 39.8% of the merged group. Subject to due diligence, independent expert and Galilee's A$2.5M raising. This follows the failed search for a Glenaras partner.

business combination

Galilee launched a fully underwritten raising: A$500,000 placement of about 40M shares at A$0.0125, plus a 1-for-2.2 entitlement offer for about A$2.15M at the same price. Canaccord underwrites, with about A$300,000 sub-underwritten by directors. Funds go to scheme costs and working capital. The raising is dilutive to those not taking up their entitlement.

capital raising announcement

Galilee has shut in most Glenaras pilot wells, leaving two operating, to calibrate its reservoir model; coals are only now approaching critical desorption pressure. The data room is open to investors, and a Queensland Frontier Gas grant will be sought. Commercial gas rates are still not achieved.

production update

Managing Director David Casey resigned on three months' notice, to step down before end-2023 after about 21 months; he cites other business opportunities. Chair Ray Shorrocks becomes Executive Chairman at no change in pay. This confirms the management changes flagged in the 12 September webinar notice.

director officer appointment

Galilee signed a non-binding MoU with India's Essar Exploration & Production to explore collaboration, including possible farm-in or investment in Glenaras and technical help on Essar's Raniganj CSG field. A second Indian partner MoU after Oil India in December; no binding terms or funding.

material agreement

The ATO approved a A$7.6M refundable R&D tax offset for 2021/22, which the company says funds it through to end 2023. It eases the falling cash position (A$5.8M at December) and opens hydrogen demonstration scoping. Remedial cementing on Glenaras 27 is done and Glenaras 28 is under way.

other

Galilee signed a non-binding MoU with APA Group to explore a pipeline from Glenaras to the Cooladdi compressor station, about 420 km south, on the South West Queensland Pipeline. It supersedes the 2017 Jemena agreement. No binding terms or costs yet.

material agreement

Glenaras 29, the sixth and final well, reached 1,039m with 27m of net coal and excellent gas shows. The drilling programme is finished and the rig released. Two existing wells are back producing, with the rest returning over coming weeks.

drilling result

Galilee adds a sixth well, Glenaras 29, to the 2022 programme, placed in the centre of the pilot to speed up pressure reduction after rain shut in existing wells. The company says the A$6.1M R&D refund helped make it possible.

drilling scheduled

Galilee received a A$6,121,511 refundable R&D tax offset for 2020/21 from Glenaras pilot and water work. It is cash on top of the A$17.3M held at March, and the company says it was already funded for current activities.

capital raising announcement

Drilling began at Glenaras 24, the first of the five new wells, each planned to about 1,000m and about 7 days. Existing pilot wells have run with the longest continuous time yet without pump failure. Some pilot wells may be turned down during the programme.

drilling spud

The share purchase plan raised A$1.555M at A$0.32 for 4,859,375 new shares, well short of the A$3M target, with no scale-back. Participants get free A$0.48 options expiring 4 September 2023. Shares are issued 21 April.

capital raising announcement

Silver City Rig 23 is contracted to drill five new vertical Glenaras wells (G24-28) from mid-April, funded by the recent A$11.8M raising. Pilot gas is about 50 Mscfd. Company says depressurisation is progressing but not fast enough for commercial gas, with modelling suggesting 6-12 months to enhance it.

contract award

Galilee raised A$11.8M through a placement of 36.9M shares at A$0.32, about 11% below the last price and far below the A$0.63 raised in November 2020. Each share carries a free A$0.48 option. Funds go to five new vertical Glenaras wells. A A$3M share purchase plan and A$440,000 of director shares are planned.

capital raising announcement

David Casey, a coal seam gas expert who authored the original Glenaras scoping study, becomes Managing Director from 1 December 2021, ending the interim role of Dr King, who also leaves the board. Pay is A$450,000 plus a A$250,000 sign-on fee.

director officer appointment

First direct pressure reading in the pilot centre (G14, about 550 psi) is below the roughly 600 psi desorption level. Share of gas coming from coal rather than water rose from about 45% to 75%. A G19 pump failure delayed full-field gas measurement; total gas stayed steady.

production update

After a board strategic review, Managing Director Peter Lansom retires as MD and director after almost eight years, staying on for technical work. Dr David King becomes interim MD for up to six months on A$450,000 while a CEO search runs. David Woodley becomes COO.

director officer appointment

Galilee signed a non-binding Heads of Agreement with Alinta Energy to work towards supplying Glenaras gas to the east coast market. It adds to the Sunshot and Jemena arrangements, but no volumes, price or terms are given.

material agreement

A A$2.5M programme will fit larger pumps in six vertical wells from late March, aiming to lift pilot water production over 30%. Gas is about 50 Mscfd, with some gas unmeasured. David Woodley, ex-Origin and Shell, is hired as Project Director.

drilling scheduled

The Glenaras pilot hit 50 Mscfd of gas, its highest measured rate, after a separator was installed to measure gas coming through the water lines. All eleven wells are producing; lateral well water has fallen to about 4,600 barrels a day. The company expects gas to rise further.

production update

December quarter: Queensland awarded the Potential Commercial Areas, securing the full Glenaras booked resource. A Heads of Agreement with Sunshot Energy adds a gas-for-power option at Barcaldine. Gas rate is still steady, with an increase expected in coming weeks. Cash A$23.8M after the A$15M placement.

quarterly activities report

Glenaras 19, 20 and 23 are commissioned and start continuous production this week, meeting the mid-November target. The other three wells are delayed by COVID-related shipping of US pumping equipment, expected on site in two to three weeks.

production update

Galilee raised about A$15M through a placement of 23.8M shares at A$0.63, a 9.4% discount to the 5-day average price. Cash rises to about A$33M, to fund Glenaras appraisal, first-phase gas commercialisation and possible Springsure exploration. Dilutes existing holders.

capital raising announcement

The final Glenaras well, 22, found 26 m net coal, completing the five-well programme on schedule and within budget. A completions rig is starting to fit pumps. The company is targeting the first new wells on line by mid-November, with gas and water flowlines about 90% installed.

drilling result

Greg Columbus joins as independent Non-Executive Director and Audit Committee member. He is Managing Director of Clarke Energy, with which Galilee has a non-binding gas power MOU, and chairs Warrego Energy. The Chair describes the move from explorer to developer.

director officer appointment

Schlumberger modelling of the Glenaras pilot is complete with a good history match. It says faster water drawdown is needed, via five new perimeter vertical wells plus Glenaras 17A as a producer, and supports the 800-1,000 PJ initial 2P reserve target.

resource reserve update

Glenaras 17A shows the whole R1-R7 coal section is being drained by the pilot, which is about 85% of the way to critical desorption (centre ~700 psi, ~100 psi above). Company sees potential for an initial 2P reserve of 800-1,000 PJ, up from the 500 PJ+ target.

resource reserve update

Glenaras 17A monitoring well reached depth after the first hole, 17, was abandoned over drilling problems. It found 30 m net coal and depletion in the Betts Creek coals, most in the R3 seam. Pilot kept running; analysis and legacy-well sealing continue.

drilling result

Kumbarilla Central 3 reached 1,073 m with 22 m net coal, but tests again showed lower than expected productivity, and fractures prevented some testing. Phase 1 is complete; the company turns to conventional oil and gas leads and moves the rig to Glenaras.

drilling result

Kumbarilla Central 2 reached 1,140 m with 25 m net coal, but preliminary drill stem testing shows lower than expected productivity. This is a setback for the reserves case. The third well, KC3, is to spud 23 April south of the fault.

drilling result

Kumbarilla Central 1 confirmed 25 m net coal, but poor downhole conditions (slow coring, mud weight issues) compromised flow testing, which is key to converting resources to reserves. Later wells will be modified. KC2 spuds later today.

drilling result

Kumbarilla Central 1 spudded on 31 March 2020, the first of three Walloon coal seam gas core-holes at Kumbarilla (ATP 2043, 504 PJ 2C). Programme is expected to take about four weeks, then the rig moves to Glenaras.

drilling spud

Savanna Rig 406 is secured for three fully cored Kumbarilla exploration core-holes from April 2020, taking 3-4 weeks. A vertical pressure monitoring well at the Glenaras pilot is under consideration. This confirms the drilling timing flagged earlier, now moved from Q1 to April.

drilling scheduled

Option exercise raised A$16.25M at A$0.75 per share, with 97% take-up by existing holders. Canaccord's underwriting covers the remaining 750,001 shares (A$0.56M). Galilee says it is fully funded for Glenaras reserves work and Surat and Bowen exploration, resolving the December option expiry.

capital raising announcement

Canaccord agreed to underwrite exercise of the 17,900,003 options at A$0.75 expiring 5 December, subscribing for any unexercised. Galilee pays 5% of proceeds in fees. This guarantees the funds, which are for exploration in its three basins, subject to conditions.

capital raising announcement

Three Kumbarilla (ATP 2043) core-holes in the Walloon coal seam gas are brought forward to Q1 2020, over a year ahead of schedule. Landholder approvals are secured and rig contract talks are advanced. 667 km of seismic reprocessing is nearly done. The 504 PJ 2C resource is unchanged.

drilling scheduled

Galilee was named Preferred Tenderer for PLR2019-1-1, a 1,425 sq km Bowen Basin block in the Denison Trough, for non-cash consideration. It is under 10km from existing gas facilities. This is the company's third basin, after Galilee and Surat.

asset acquisition disposition

First measured gas from the Glenaras pilot: 15-20 thousand cubic feet a day in aggregate and rising, with water about 6,400 barrels a day and levelling off. Turns early unmeasurable gas into a metered flow, though the volume is still small.

production update

Gas has started flowing from the Glenaras pilot, though at rates too small to measure. All wells are below the critical desorption pressure, with water at about 6,800 barrels a day. First gas ahead of the roughly three-month drawdown expected from late July.

production update

ATP 2043 (Surat Basin, 384 sq km) was formally granted at 100% for six years from 1 August 2019, with an independently certified 504 PJ 2C contingent gas resource. This lifts the company's total 2C resource to 3,012 PJ.

resource reserve update

All five Glenaras lateral wells are online and on continuous production, with surface facilities complete and the A$8M programme on budget. Production will be ramped up over coming weeks. This starts the roughly three-month drawdown needed to see gas.

production update

Galilee was named Preferred Tenderer for a 384 sq km Surat Basin block (PLR2018-1-8) in a Queensland Government tender, paid for with non-cash consideration. It is under 10km from existing CSG facilities. This adds a second area beyond the Galilee Basin.

asset acquisition disposition

Final well Glenaras 16L was drilled with about 308m of net coal, completing the three-well programme on schedule and within the A$8M budget. Management says the project is substantially de-risked; completions start mid-June, with production still aimed for early July.

drilling result

Glenaras 14L, described as the most important well of the programme, was drilled with about 240m of net coal in the R3 target, on schedule and budget. The rig has moved to 15L. Cost and early-July production target unchanged.

drilling result

Glenaras 14L, the central well of the three-well programme, spudded on 17 April and the surface hole reached 200m. Target depth is about 1,530m. Six-week programme and A$8M cost unchanged; production now aimed for early July 2019.

drilling spud

Three new Glenaras laterals (14L, 15L, 16L) will be drilled from early April 2019 at about A$8.0M, using Easternwell Rig 103. The two existing wells drain a larger area than planned, so the pilot is redesigned. Production by late June; the 500 PJ 2P reserves target is unchanged.

drilling scheduled

Galilee signed a letter of intent with Easternwell for a rig, with drilling planned for April 2019, funded by the recent raising. Pilot water is down to about 3,100 barrels a day, gas still 15-20 thousand cubic feet a day. Shares on issue now 225,679,361.

drilling scheduled

Galilee raised about A$13M by placing 21,666,667 shares at A$0.60, with a free 1:1 option at A$0.75 expiring December 2019. A new cornerstone investor took the largest part. Funds are to secure a rig, order long-lead items and add working capital.

capital raising announcement

First gas has begun flowing from Glenaras 10L, at a rate too small to measure, as both wells fall below critical desorption pressure. Water is about 3,500 barrels a day. Management says months more are needed to reach commercial gas rates.

production update

Galilee raised about A$5.66M through a placement of 14.155M shares at A$0.40, a 9% premium to the 15-day VWAP, with a free 50c option expiring 31 Dec 2019 per share. Water rates reached about 2,400 barrels a day, and pressure drawdown was seen in the 11L monitoring well.

capital raising announcement

Initial pump-commissioning tests on both wells flowed water at over 750 barrels a day with under 10% reservoir pressure drawdown, at the upper end of pre-drill expectations. This is water, not gas; dewatering is expected to take months before gas flows.

flow test result

The pilot is cut from three laterals to two. Glenaras 12L was drilled with about 480m of coal, but a sidetrack got stuck and 11L will not be drilled further, becoming a monitoring well. Mid-June start-up is unchanged; management is disappointed but confident of booking first reserves.

drilling result

First lateral, Glenaras 10L, was drilled with about 520m of net coal in the R3 seam, on time and on budget, and flowed freely during connections. The rig has moved on to the first shield well, Glenaras 11L.

drilling result

Glenaras 10 spudded on 23 March, starting the three-lateral pilot that the October 2017 raising funded. The vertical test hole was at 762m, heading to 1,100m, with six weeks of drilling expected and production start-up targeted for early June.

drilling spud

Stephen Kelemen, a 40-year industry veteran with Santos coal seam gas background, joins the board as non-executive director from 31 March 2018. Ray Shorrocks takes over as Chairman from Dr David King, who stays on as a non-executive director.

director officer appointment

The entitlement offer closed oversubscribed, raising the full A$2.59M through 17.25M shares at A$0.15; shareholders took up 59% and the rest came from shortfall applications, so underwriters placed nothing. With the placement, cash is about A$10.6M, completing the A$5.6M raising.

capital raising announcement

Galilee is raising about A$5.6M at A$0.15 a share (9.1% discount): a A$3.05M placement of 20.3M shares plus a fully underwritten 1-for-10 entitlement offer for up to about A$2.59M. Funds go to the three-lateral Glenaras pilot and working capital.

capital raising announcement

Galilee signed a binding agreement with Jemena to fast-track a pipeline from Glenaras to the east coast market. Jemena starts community engagement and design work while Galilee appraises to certify enough gas to underwrite it; both aim for FEED in 2019.

material agreement

Lateral pilot testing is complete after about 10 months; modelling matched the data and supports a new three-lateral pilot nearby, with drilling targeted before end-2017. Cash A$6.1M. Joint venture options are being considered. This replaces the earlier plan to build gas rates at the existing pilot.

quarterly activities report

September quarter: Glenaras lateral now produces over 4 times the old five-well rate, flows below critical desorption pressure and first gas is through the separator. Cash A$6.7M, no debt. US and Chile remain inactive.

quarterly activities report

Lateral well is flowing water at over 2.5 times the old five-well pilot rate at 50% drawdown, above modelled expectations. Gas onset is expected in coming months. Executive salary cuts are reversed from 1 October and non-executive fees restored to 50%.

production update

Glenaras lateral well completed on time and within budget, with 400 m of lower R1 coal opened and intersecting Glenaras 3. Strong pressure response at Glenaras 4 exceeded expectations. Production restart is expected within a week, weather permitting; gas results are still to come.

drilling result

Galilee has contracted a lateral well through the Glenaras R1 pilot, with mobilisation by mid-August 2016. The vertical pilot is likely at equilibrium without more offtake. Success could allow a first reserves booking in early 2017, delayed from earlier hopes of mid-2016.

drilling scheduled

Strategic review outcome: all US spending ceases except abandonment, with Kansas and Texas assets offered for sale or farm-out. Glenaras R1 results are expected late Q1 2016, with testing to June 2016. Cash expected above $11.0M at end December; executive pay cut 20%, non-executive fees waived.

other

Hoffer A1 hit over 140 ft of Midcox sandstone but none judged commercial; the well will be plugged and abandoned. Galilee suspends US investment and starts a strategic review, with focus on Glenaras, where R1 test results are expected early 2016. Contradicts the hoped-for Hoffer follow-up.

drilling result

Hoffer A1 spudded 8 November 2015, a 12,250 ft offset to the Hoffer B1 discovery, with Galilee's interest rising to 43.5% (34.8% after payout). Dry-hole cost ~US$1.9M (100%); success could give ~US$2.0M net revenue in year one. Drilling takes 30-40 days.

drilling spud

A workover rig has mobilised to ATP 529P to recomplete the five Glenaras pilot wells in the R1 coal seam. Workover should take about 6 weeks, then 6-9 months of production testing, which is key to converting contingent resources to reserves.

drilling scheduled

New MHA assessment lifts ATP 529P contingent gas resources to 308 PJ (1C), 2,507 PJ (2C) and 5,314 PJ (3C), from 259 PJ 2C in 2011, covering a larger area with new well data. No reserves yet; R1 test early Q4 2015.

resource reserve update

Galilee completed buying AGL's remaining 50% of ATP 529P, now 100% owner and operator. R1 coal seam testing is planned to start early in Q4 2015. Completes the deal announced 4 June.

asset acquisition disposition

Hoffer B1 Midcox zones flowed about 6 MMscfd in total, but poor cement integrity has compromised testing and some zones may not be usable in this well. Galilee still calls it a gas discovery; reserves auditor planned, development wells under US$2.0M each.

well test result

First Middle Midcox zone at Hoffer B1 (about 17 ft net pay) flowed 3.5 MMscfd over 12 hours, with possibly 25-50 barrels of condensate a day. Testing was suspended after a suspected cement failure, repaired. Zones below the Middle Wilcox were not commercial. More testing follows.

well test result

AGL agreed to transfer its 50% of ATP 529P to Galilee at no upfront cost, plus $590,000 for Glenaras operations, making Galilee 100% owner and operator. Subject to final agreement and approvals; resolves the earlier wait on AGL budget approval for the R1 test.

asset acquisition disposition

Cased hole logs on Hoffer B1 show about 90 ft of gross sandstone in the primary target and about 30 ft more elsewhere, giving roughly 200 ft of combined zones of interest. Net pay cannot be measured through casing; perforating and testing plans are being prepared.

drilling result

Hoffer B 1 reached 14,150 ft (350 ft short of target) with thirteen significant shows; production casing is being run to complete it for testing. Dworsky Haas 1 reached 11,600 ft but its Midcox sands were tight, so the deep section is plugged and shallower zones will be tested. Kansas 3D data quality is excellent.

drilling result

Logs on Hoffer B1 show 43 ft of net gas pay in the Middle Midcox, a secondary target, and a possible 40 ft in the Yegua. The company says the 43 ft alone could make the well commercial at current prices, subject to flow testing. Primary target still to be drilled.

drilling result

Hoffer B, the Lavaca County, Texas well in which Galilee holds 35%, was spud on 6 January 2015, targeting 14,250 ft in the Lower Wilcox. Expected to take 40-60 days. Total exposure including entry cost is put at under US$1.5m; the partner's prospect estimate is 70 Bcf gas plus 1.8m bbl oil, not certified.

drilling spud

Wenzel 1, the fourth Illinois well, reached 2,757 ft and a test found no commercial hydrocarbons, so all four wells were dry. Galilee and partners suspend field activity until early Q2 2015 to review results, and the company says they support further exploration.

drilling result

Cunningham 1, the third Illinois well, reached 2,556 ft. Oil shows were weak or the zones tight, and no commercial hydrocarbons were recovered; the well is being plugged. Shale shows again extend the resource-play study area. Wenzel 1, the final well, is next.

drilling result

Galilee signs binding agreements to widen its Lavaca County, Texas interests: 37.5% in a new Lower Wilcox exploration area, 32% (24% after payout) in the Dworsky Haas 1 well, and a share of Williams 2. Hoffer B is expected to spud mid-to-late December 2014; Dworsky cost to casing point is about US$900,000.

asset acquisition disposition

Kramer 1, the second Illinois well, reached 2,625 ft. Strong oil and gas shows in the Racine zone were tested without commercial hydrocarbons, and the well is being plugged. Shale shows widen the area of interest for a resource-play study. Rig moves to Cunningham 1.

drilling result

Hanner 1 reached 2,268 ft; the main Racine reef reservoir was poorly developed and a test of the Trenton zone found no commercial hydrocarbons. The well is being plugged. About 300 ft of oil shows are said to show a working petroleum system; the first Illinois well is a dry hole.

drilling result

The first Illinois well, Hanner 1 (Logan County, target depth 2,990 ft), is due to spud this week, with Kramer 1 next. Dry hole cost is expected under US$200,000. The MD calls it Galilee's first drilling in a number of years.

drilling scheduled

June quarter: reviews the new Chile, Illinois, Texas and Kansas projects. The Glenaras R1 test program is deferred because AGL has no approved budget for it, a setback to the ATP 529P restart announced on 31 March.

quarterly activities report

Galilee signs a conditional MOU, subject to a final JV agreement, to earn up to 75% working interest in selected areas of 110,000 acres in Kansas by funding a 3D seismic survey and wells. Galilee would operate; seismic planned for Q3 2014.

material agreement

Galilee acquires a 35% working interest (final interest subject to other participants) in the Hoffer prospect, a 4,300m exploration well in Lavaca County, Texas, planned for late 2014. Expected cost to testing is under US$1.5m. A third new project.

asset acquisition disposition

Galilee enters a joint venture to drill shallow oil prospects in Illinois, funding the first well on each prospect to earn a 75% working interest. Dry hole costs are under $200,000 each; drilling is planned for Q4 2014. Second diversification move after Chile.

farm in farm out agreement

Galilee signs a non-binding MOU with Chile's state oil company ENAP to study coal seam gas in a roughly 7,200 sq km area of the Magallanes Basin. It is the first step in the diversification strategy; concession ownership interests are still to be agreed.

material agreement

AGL and Galilee agree a workover of the Glenaras pilot to perforate and test only the top R1 coal, as proposed on 3 March. Cost is under $2.0m ($1.0m net to Galilee); work expected to start in about three months.

joint venture update

Galilee's review concludes the Glenaras pilot's fracture-stimulated completion design is unsuitable, causing the minimal gas seen. The JV with AGL stops the pilot in its current form. Galilee proposes a cheaper recompletion; it says the Betts Creek coals could still support commercial gas.

joint venture update

Galilee reports shareholders overwhelmingly rejected the proportional bid on a show of hands; direct votes were about 42.0m against and 17.8m for. The takeover cannot proceed and any acceptances are rescinded, resolving the Mercantile bid in the board's favour.

business combination

Mercantile confirms Galilee shareholders voted against the proportional takeover, so Olympus will withdraw the offer and any acceptances become void. This ends the bid announced on 21 October 2013.

business combination

Galilee's directors unanimously recommend rejecting the 15c offer and voting against it at the 21 January 2014 meeting. If fully accepted, Olympus would hold about 51.16%. This is the board's formal response to the October proposal.

business combination

At the AGM the MD says ATP 799P is unlikely to hold commercial hydrocarbons and the board recommends relinquishing it. Glenaras makes about 3,000 bwpd of water with minimal gas, after a pump failure; reserves unlikely before Q1 2014. Plans diversification; cash $27m.

investor presentation

Mercantile's subsidiary Olympus lodges its formal bidder's statement: 15c cash for one of every two shares, with no conditions and no minimum acceptance. This turns the October 21 intention into a formal proportional bid; 13.5c was the 22 November close.

business combination

Chairman King says over $64m has been invested in ATP 529P without completed testing, and Glenaras results are likely delayed to end of Q1 2014 or later. He plans a decision on ATP 799P by the AGM and a diversified acquisition strategy. Haworth is no longer employed; Mercantile's 15c bid is said to be about 20% below cash backing.

investor presentation

Malt's nominees take the top roles: Dr David King Chairman, Peter Lansom Managing Director, Paul Bilston Executive Director. They begin a permit review and a growth plan, saying the company faces a binary outcome tied to the Glenaras pilot.

director officer appointment

Young, Camarri and Jensen resign and will not stand at the AGM. The Malt-backed directors withdraw the Supreme Court action, which Galilee consents to. This ends the board dispute in Malt's favour.

director officer appointment

Mercantile (Sir Ron Brierley's company) says it intends a proportional takeover for 50% of each holding at 15 cents, a 15% premium to 13c. If successful it would cut costs, stop ATP 799P spending and seek to return cash to shareholders.

business combination

The three Malt-backed directors elected on 24 September have applied to the Queensland Supreme Court to sue, in Galilee's name, Haworth, Young, Camarri and Jensen for alleged breaches of duty. They also seek Jensen's resignation and a ruling voiding Haworth's contract. The board fight has become litigation.

other

Chairman Young rebuts Malt Energy's open letter ahead of the requisitioned general meeting, saying Malt, with 16.125%, seeks management control. He notes AGL wrote down the Galilee Gas Project in its accounts and is seeking a 12-month pilot extension from 1 December 2013.

joint venture update

Andrew Young, an oil and gas veteran with 37 years' experience, is appointed independent Chairman, replacing interim Chairman Cam Rathie, who stays on as a non-executive director. This fills the vacancy left by Koroknay's death in June.

director officer appointment

A shareholder holding over 5% has requisitioned a general meeting to remove Chairman Cam Rathie and Managing Director Glenn Haworth and appoint three new directors (David King, Peter Lansom, Paul Bilston). The board is considering the request.

other

Chairman Steven Koroknay, chairman since June 2010, died suddenly on 6 June 2013. The board says it remains committed to the strategy of the AGL joint venture and seeking growth. An interim chairman is to be named.

director officer appointment

After Koroknay's death, director Cam Rathie becomes interim Chairman and CEO Glenn Haworth becomes Managing Director, in line with the board's succession plan. A search for an additional non-executive director has begun.

director officer appointment

Hillview 06 in ATP 799P (Galilee 100%) hit two coal seams of 5.51m and 7.15m, with the best early gas indications yet in the permit; oil was seen in Toolebuc Shale. 386m of core taken; the well is plugged. Core tests due Q1 2013 for a possible resource booking.

drilling result

June quarter: cash $33.8m. Glenaras produced just 1,170 mscf in May; under-reamed wells GA03 and GA05 gave mainly water, so under-reaming looks unsuitable. The contingent part of the 2012 budget is deferred, cutting Galilee's 2012 spend to $4.5m from $10m. ATP 799P: one well plus 100km seismic approved.

quarterly activities report

Glenaras 6 flowed steadily at about 54 Mscf/day for four days, reported as the project's first gas discovery and first stabilised flow in the Galilee Basin. The three step-out wells (GA07-09) are complete, each with over 25m of coal.

well test result

First resource estimate for ATP 529P by SRK: contingent resources of 259 PJ (2C) and 1,090 PJ (3C, 1.043 TCF), covering 450 km2 of 5,929 km2 (100% basis; Galilee holds 50%). This delivers the first booking targeted for 2011.

resource reserve update

Galilee guides to FY2011 profit of $21-22m from the ERG sale, with no tax payable. A $5.24m completion payment was received in May; under $1m remains. Cash is $39.5m. Resource estimate due end June; reserve estimate now aimed at December 2011 after pilot delays.

other

The sale of the NZ coal business (ERG) to Bathurst completed on 18 March 2011, ending the restructure begun in 2009. Galilee has received A$28.11m, about A$6m is due in May, and cash is $35.5m with no debt. This resolves the sale thread.

asset acquisition disposition

Galilee and AGL approve the 2011 ATP 529P budget of $12m ($6m each): continue the Glenaras pilot, drill three core wells (one contingent) and one production well, and engage experts for a resource estimate. This closes out the $37m farm-in program.

joint venture update

Galilee agrees to sell its New Zealand coal assets (ERG) to Bathurst for A$35m cash, including a non-refundable $2.4m deposit covering IPO costs. The IPO is cancelled. Completion is expected early 2011, with net benefit about $30m. This resolves the IPO and Bathurst threads.

asset acquisition disposition

Non-executive director Campbell Smith resigns from the Galilee board and all related companies, and intends to sell all his and associated entities' Galilee shares. He had been responsible for the NZ coal assets now being sold. His family's holdings, including Becamal, are expected to exit the register.

director officer appointment

Galilee's shares are suspended at its own request pending an announcement about a potential significant transaction, due before trading on 15 November. Inference: likely related to the NZ coal assets, though the text does not say so.

other

Prospectus lodged for a fully underwritten A$25m IPO of Eastern Resources Group: 125m shares at 20c, underwritten by Patersons. Galilee keeps at least 21.9% and has a $6.4m intercompany loan repaid. Priority offer for Galilee holders; listing targeted for 9 December.

capital raising announcement

Bathurst Resources says it offered A$30m for Eastern Resources Group, Galilee's NZ coal holding company, and Galilee's board rejected it to continue with the IPO. Bathurst says it would pursue the deal if the board reconsiders.

business combination

The board resolved to proceed with an IPO of its New Zealand coal assets via Eastern Resources Group, subject to terms and underwriting, with a prospectus targeted for late October. Galilee would keep a significant minority; about 50% of shares are earmarked for eligible Galilee holders.

asset acquisition disposition

The two ATP 799P coreholes, Dunrossie-01 and Dotswood-01, found pipeline-quality gas with average gas content of 2.6 and 2.5 m3/t (peaks 4.26 and 6.8). Permeability reached 15.7 and 32.8 md. Galilee calls results encouraging and commits to a 2010/14 work programme.

drilling result

Glenn Haworth, previously general manager of operations, is appointed CEO. Campbell Smith steps down as Managing Director from 1 September but stays as a non-executive director responsible for the New Zealand coal assets. This resolves the CEO search.

director officer appointment

Galilee is reviewing its New Zealand coal assets and considering an IPO of them into a separate ASX-listed company to fund their next stage. It would keep a significant minority stake, with a priority offer for shareholders. The board says there is no guarantee it will proceed.

asset acquisition disposition

Galilee expects its first-ever profit, A$1.6-1.8m after tax for the year to 30 June 2010, versus a $2.447m loss the year before. It credits the $8.5m Broughton sale and New Zealand coal profit of $2-2.5m. Figures are unaudited until September.

other

Eastern shareholders approved the share issue for the Galilee buyout at the 1 June EGM, and Eastern renamed itself Galilee Energy Limited. The ASX code changes from ECU to GLL on 4 June. The New Zealand coal business continues under a wholly owned subsidiary.

business combination

All Galilee minority holders have accepted Eastern's 1-for-7 buyout offer, which closed 28 May. Eastern will hold 100% of Galilee once its shareholders approve the share issue at the 1 June EGM, which also covers the rename to Galilee Energy Limited.

business combination

Eastern completed the sale of its 90% of Broughton (EPC 818) for A$8.5m, with payment received, ending its Australian coal exposure. Its Galilee holding has risen to 98% on acceptances to date.

asset acquisition disposition

Acceptances from Galilee minorities reached 26.62%, taking Eastern to 94.61% of Galilee, above the 90% condition. Finalising the offer still needs Eastern shareholder approval at an EGM expected 1 June 2010.

business combination

Galilee's independent board committee recommends minorities accept the new 1-for-7 offer, absent a superior proposal. It cites the higher price and 26.25% commitments. Merged holdings would be about 27.89% former Galilee holders and 67.54% current Eastern.

business combination

Eastern made a new offer of 1 Eastern share for every 7 Galilee shares, valuing each at 4.9c versus 3.1c before. Holders of 26.25% have agreed to accept. Offer closes 28 May; Becamal may convert up to $2.4m of loan to shares.

business combination

Eastern's 1-for-9 offer for Galilee minorities lapsed on 19 April 2010 because its conditions were not satisfied or waived. No Eastern shares will be issued. Eastern says it will make a new offer on different terms.

business combination

Campbell Smith intends to resign as Eastern's Managing Director once a replacement is found, expected in the second half of 2010. He stays as non-executive director of Eastern and Galilee. A new CEO will focus on coal seam gas.

director officer appointment

Eastern exercised the put option to sell its 90% of Broughton (EPC 818) to Resource Portfolio Partners for A$8.5m, the bottom of the $8.5-12m range. Completion is expected in May 2010, subject to conditions precedent.

asset acquisition disposition

Eastern offered to buy out the Galilee minority, 1 Eastern share for every 9 Galilee shares, valuing each at 3.1c at 27.5c. Up to 33,002,114 Eastern shares would be issued, closing 19 March. It needs 90% acceptances (waivable) and Eastern shareholder approval.

business combination

Eastern guides to a half-year loss of A$4.2-4.5m, up from A$1.55m, on higher gas exploration spending, despite NZ profit of A$1.2-1.3m. The Fonterra supply deal is extended 10 years, and Broughton sale is expected to complete in Q1 2010.

other

Eastern signed a put and call option with Resource Portfolio Partners to sell its 90% of the Broughton coal project (EPC 818) for A$8.5-12m over six months, subject to conditions. It followed Rio Tinto's subsidiary withdrawing from its earlier purchase in November 2008.

asset acquisition disposition

Galilee's rights issue raised about $5.48m at 6.5c; Eastern took 62.19m shares for $4.04m, funded from its own raise, lifting its stake from 67.4% to 68%. Money goes to Galilee Basin gas work including ATP 799P field work.

capital raising announcement

Eastern's entitlement offer raised about $5m at 24c, with 87% take-up (17.9m shares). Patersons takes the 2.6m-share shortfall, with Becamal taking about half. Money funds Galilee Basin exploration.

capital raising announcement

Eastern is raising A$7.5m at 24c: a A$2.5m placement of about 10.4m shares and a 1-for-4 entitlement offer for about A$5m, underwritten by Patersons. Funds mainly go to exploring ATP 799P. Becamal sub-underwrites. Follows the April price spike.

capital raising announcement

Steven Koroknay becomes non-executive Chairman of Galilee, with Rino Camarri staying as a director. Cam Rathie, a coal seam gas specialist, also joins the board. This changes Galilee's chair.

director officer appointment

All five Glenaras pilot wells are drilled, finishing the first phase on schedule. A water pond must be built before the wells are perforated and dewatering starts, which should run through 2009 to establish gas flow rates. No gas results yet.

drilling result

Eastern took up Galilee's 31.15m-share rights issue shortfall for $2.648m, lifting its stake to 67.4%. The raising totals $4.48m for ATP 799P seismic. Eastern funded it with a 12% unsecured $2.6m loan from a related party of MD Campbell Smith.

capital raising announcement

Rio Tinto subsidiary Queensland Coal will not buy Eastern's 90% Broughton interest because its board did not approve, and the deposit will be refunded. This collapses the $10m sale expected to complete in December; Eastern is considering other options.

material agreement termination

Glenaras 4, the first pilot well, spudded 7 October and reached 1,103 m on 14 October, with wireline logs to follow. AGL operates and holds 50%, Galilee's subsidiaries 25% each. Coal results await log evaluation.

drilling spud

Richard May, a non-executive director since August 2006 and former KPMG partner, is appointed non-executive Chairman of Eastern.

director officer appointment

Eastern accepted a $10m offer from Rio Tinto subsidiary Queensland Coal for its 90% Broughton interest and received a deposit. Completion is expected December 2008. This revives the sale that collapsed in March.

asset acquisition disposition

Galilee's rights issue raised $1.83m at 8.5c (21.56m shares), for ATP 799P exploration, leaving 812.3m shares. Eastern didn't take up its rights but plans to buy the 31.15m-share shortfall for $2.65m, lifting its stake to 67.4%.

capital raising announcement

AGL will earn 50% of ATP 529P by spending $37m on the Rodney Creek pilot and later exploration, and will operate the joint venture. A 10-year gas marketing agreement was also signed. Subject to ministerial approval; resolves the pilot funding search.

farm in farm out agreement

Rio Tinto will not proceed with buying Broughton, ending the $10m MOU of January. Eastern will keep seeking a buyer, is talking to a potential purchaser, and is considering a short-term Convertible Note raising.

asset acquisition disposition

Eastern expects a loss of about $3m for the six months to 31 December 2007, against $1.132m a year earlier. It cites roughly $1m more Galilee exploration spending, a roughly $750,000 larger NZ mining operating loss and restructure costs.

other

Eastern signs an MOU with Rio Tinto Coal Australia to sell Broughton Coal Mining, which holds 90% of the Broughton JV, for $10m, subject to due diligence by end February. Follows the earlier finding that stand-alone development was not viable.

asset acquisition disposition

The 1:10 share consolidation approved at the 28 November AGM is completed, cutting shares on issue to 71,785,401 held by 1,796 holders. Holdings are rounded up; trading of the new shares starts 13 December 2007.

security holder rights change

Rodney Creek 8 permeability testing gave 1 to 120 millidarcies with a weighted average of 50 mD, described as above average and comparable to other Australian coal seam methane areas. Adsorption isotherms are due mid January, then a final report.

well test result

November update repeats the Rodney Creek 8 results. New: Galilee plans five more exploration wells and a five-spot pilot, funding via farm-ins, placements or a float is being considered, and Eastern plans to relinquish Dorben. Cash $1.45m, debt A$4m at end September.

investor presentation

Preliminary Rodney Creek 8 results: 24.77m of gassy coal, gas content 2.8 to 6.6 m3/t (median 4.4), 97-98% methane, moderate to high permeability. Final report expected January 2008. Confirms the earlier encouraging view.

drilling result

Galilee says Rodney Creek #8 drilling and testing is complete and encouraging: 27.6m total seam thickness, over 16m potentially economic, gas content comparable to or better than earlier Enron results. Lab confirmation is due late October; exploration options review to report early 2008.

drilling result

Executive Director Campbell Smith becomes Managing Director of Eastern from 23 July 2007, adding Australian projects to his NZ role. CEO Mike O'Brien retires from the same date.

director officer appointment

Drilling starts at Rodney Creek in Galilee's ATP 529P, targeting about 1,200m to test gas content and permeability of the coal seams. The long-delayed programme is due to finish within 30 days, with testing taking 3 to 4 months.

drilling spud

Galilee Energy plans to raise $3.07m by issuing 614m shares at 0.5c to fund its coal seam methane and petroleum exploration, with drilling due mid-June. Eastern (60.52%) intends to take up its full entitlement but will not underwrite any shortfall.

capital raising announcement

Eastern Coal Supplies signs a two-year contract to supply about 130,000 tonnes a year of Takitimu coal to Fonterra's Clandeboye plant from September 2008. Eastern says it underpins Takitimu production, advancing the ramp-up and offtake thread.

contract award

Eastern declares an initial Whareatea West resource of 25.7Mt (18.0Mt Measured, 7.7Mt Indicated) of coking to high-ash thermal coal, 70-85m deep. Only 40% of the permit is explored, so it could grow. This resolves the pending resource estimate.

resource reserve update

Executive Chairman Gordon Smith steps down due to ill health but stays as a director. Director Howard Stack becomes Chairman from 19 March 2007.

director officer appointment

Eastern will not develop Broughton as a stand-alone project for now, because higher costs and projected revenues do not justify it. This reverses the planned 2008 production. Mitsui keeps its 10% and its option on a further 20%.

joint venture update

Eastern completes the NZ$2m Straith coal mine purchase on 8 September, with an initial 2.85Mt Measured Resource, resolving the open Straith thread. It also bought the Timaru fuel centre for NZ$2.4m as a coal distribution point. Mining is due to start early October.

asset acquisition disposition

Eastern expects full-year pre-tax profit of $1.9m to $2.1m, with Cascade profit lower than projected because of port and rail access delays and a weak domestic customer. Cash reserves are $7.5m after a maiden operating cash flow of $1.3m.

other

CEO Paul Williams stepped down immediately as CEO and director to pursue other interests. Group Operations Manager Mike O'Brien becomes CEO, and company secretary Bill Lyne fills the board vacancy.

director officer appointment

Eastern agreed to buy Straith Industries' coal mining operations in the Ohai/Nightcaps area of New Zealand for NZ$2m, giving it a second NZ mine after Cascade. Completion is due by 31 July 2006, subject to due diligence and consents.

asset acquisition disposition

Eastern raised $4.2 million from AMP Capital Investors through a placement of 70 million new shares at 6 cents each. Funds are for proposed coal acquisitions in Australia and New Zealand and working capital.

capital raising announcement

Galilee Energy (60% owned by Eastern Corporation) plans two coal seam methane exploration wells at Rodney Creek and Crossmore from late March 2006, on permits ATP 529P and ATP 799P. Budget is about $1.2m, funded by existing Galilee shareholders including Eastern.

drilling scheduled