23 Sept 2020drilling result▲ Good
Glenaras 23 reached total depth on time and budget, with all Betts Creek coals on prognosis and 29 m net coal. It is cased and suspended for production. Glenaras 21 spudded 22 September.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 Sept 2020drilling spud● Neutral
Glenaras 23, the first of five vertical pilot-enhancement wells, spudded 14 September and reached 207 m surface hole. The full programme is expected to run 4-5 weeks, at 6-7 days per well. This starts the drilling flagged in August.
26 Aug 2020drilling scheduled▲ Good
Silver City Rig 25 is contracted and long-lead items are ordered for the five Glenaras vertical wells (~1,050 m each). Drilling is on track for mid-September, taking 5-6 weeks, without shutting in the pilot. This follows the 11 August modelling result.
11 Aug 2020resource reserve update▲ GoodMajor
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.
17 June 2020resource reserve update▲ GoodMajor
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.
18 May 2020drilling result▲ GoodMajor
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.
28 Apr 2020drilling result▼ BadMajor
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.
22 Apr 2020drilling result▼ BadMajor
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.
17 Apr 2020drilling result▼ BadMajor
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.
14 Apr 2020drilling result▲ Good
Kumbarilla Central 1 reached 1,020 m, intersecting coal in all three Walloon targets with strong gas shows. Preliminary logs show about 25 m net coal, above pre-drill expectations. Gas content and flow results are still pending.
1 Apr 2020drilling spud▲ GoodMajor
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.
4 Mar 2020drilling scheduled● Neutral
Lease preparation has begun at Kumbarilla for drilling from early April, and the Glenaras vertical monitoring well is now planned within the same rig programme, either before or after, between early April and early May. It will measure pilot pressure without shutting wells in.
12 Feb 2020drilling scheduled▲ GoodMajor
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.
27 Nov 2019drilling scheduled▲ GoodMajor
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.
1 Aug 2019resource reserve update▲ GoodMajor
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.
8 July 2019drilling progress report▲ Good
Pumps are installed in 14L, 15L and 16L and pipelines are complete. Commissioning and flow testing of 14L has begun, with 15L and 16L to follow in about 10 days. The three-month drawdown for material gas is unchanged.
17 June 2019drilling progress report▲ Good
Completions rig is on site to fit pumps to the three new wells, and the first stage of the gas and water pipelines is installed. Early-July start-up and A$8M budget hold. The environmental authority was also amended to allow more flexible produced-water management.
27 May 2019drilling result▲ GoodMajor
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.
15 May 2019drilling result▲ Good
Second well Glenaras 15L was drilled with about 295m of net coal in the R3 seam, on schedule and budget. The rig is moving to 16L, due to spud 17 May. Programme still points to early-July production.
30 Apr 2019drilling result▲ GoodMajor
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.
18 Apr 2019drilling spud▲ GoodMajor
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.
26 Mar 2019drilling progress report● Neutral
Civil works for the three-well Glenaras drilling programme are finished and Easternwell Rig 103 is mobilising to Longreach. Drilling is on track for early April, with new wells on production by late June. Cost remains about A$8M.
18 Feb 2019drilling scheduled● NeutralMajor
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.
20 Dec 2018drilling scheduled▲ GoodMajor
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.
29 May 2018drilling progress report● Neutral
Pumps have been installed in Glenaras 10L and 12L and completion work is finished. Surface facilities and flowlines are next, with mid-June production start-up still on schedule.
17 May 2018drilling progress report● Neutral
The completions rig is on site to install pumps in Glenaras 10L and 12L over about a week. The drilling rig has left, and mid-June production start-up is still on track.
11 May 2018drilling result● Neutral
Final drilling update: most of the stuck drill string at Glenaras 12L was recovered, and the 12L lateral and sidetrack are intact. The pilot stays a two-lateral design, with 11L as a monitoring well. The completions rig is mobilising and mid-June start-up remains on track.
7 May 2018drilling result▼ BadMajor
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.
23 Apr 2018drilling progress report● Neutral
After the stuck assembly at Glenaras 11L was backed off, the rig moved to the third location and spudded Glenaras 12L, to return to 11L later. The six-week drilling duration is no longer stated; early June production start-up is still targeted.
19 Apr 2018drilling progress report▼ Bad
Drilling of the Glenaras 11L shield well hit coal stability problems about 60m into the coal, leaving the drilling assembly stuck. The company will update the market in coming days. This is the first setback for the pilot.