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ASX/MEDIA ANNOUNCEMENT
ATP 529P Resource Assessment
Significantly Expands Project
1 September 2015
MHA Petroleum Consultants LLC Resource Assessment updates ATP 529P Contingent Resources to 308 PJ (1C), 2,507 PJ (2C) and 5,314 PJ (3C)
New Resource Assessment includes extensive additional new data from 8 step out wells and pilot data which significantly expands the project area
Galilee Energy Limited (ASX:GLL) ("Galilee" or the "Company") is pleased to announce the upgrade of its coal seam gas Contingent Resource estimation at ATP 529P located within the Galilee Basin in Queensland.
As a result of the step out drilling and pilot production testing completed in the permit the 2015
Contingent Resource estimation completed by MHA Petroleum Consultants LLC (MHA) covers a significantly larger area than previously assessed. This includes data from 8 step out wells as well as the pilot and pressure monitoring data from the Glenaras Pilot production completed subsequent to the 2011 SRK Consulting Report.
MHA have attributed the increase in the Contingent Resources to Galilee's net equity interest (being
100%) in ATP 529P using the deterministic method to prepare the estimates of the Contingent
Resources as at 31 August 2015.
The updated ATP 529P 2015 Contingent Resource estimation increases contingent resources by
868% (2C) and 388% (3C). The following table summarises the changes to the ATP 529P Contingent
Resource.
ATP 529P
|
Units
|
2011 (SRK)
|
2015 (MHA)
|
Low estimate Contingent Resources (1C)
|
PJ
|
11.8
|
307.8
|
Best estimate Contingent Resources (2C)
|
PJ
|
258.9
|
2,507.5
|
High estimate Contingent Resources (3C)
|
PJ
|
1,089.9
|
5,314.1
|
Source: SRK Consulting (2011), MHA Petroleum Consultants LLC (2015) * See Notes to Table below
Managing Director Peter Lansom said "The ATP 529P resource upgrade highlights its significant potential to become an economic gas supplier into the Australian east coast gas market. The larger resource greatly improves the projects economics and feasibility as a high quality gas supplier to
meet the forecasted east coast gas shortage."
A: Level 4, Rowes Building, 235 Edward Street, Brisbane QLD 4000 / P: GPO Box 1944, Brisbane QLD 4001 /
GALILEE ENERGY LIMITED
ABN: 11 064 957 419
T: +61 7 3177 9970
E: [email protected]
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ASX: GLL
www.galilee-energy.com.au
ASX/MEDIA ANNOUNCEMENT
Galilee intends to expedite the R1 coal seam test program at ATP 529P. The R1 coal seam test will target the production potential of the uppermost R1 coal seam, allowing pressure drawdown of the coal without any contribution from neighbouring sands. Testing is planned to commence early in the
4th quarter 2015.
Competent person's statement
The estimates of contingent resource estimates were determined by Mr Tim Hower, a full time employee of MHA Petroleum Consultants LLC., Denver, Colorado, USA, on 1 September 2015, in accordance with Petroleum Resources Management System guidelines. Mr Tim Hower is a Licensed Petroleum Engineer in the State of Colorado, a qualified person as defined under the ASX Listing Rule 5.41 and has consented to the use of the contingent resource figures in this announcement.
*Listing Rule 5 - Reporting of Oil & Gas Activities
Contingent Resource estimates appearing in the Table have been prepared in accordance with the Society of Petroleum Engineers ("SPE") 2007 Petroleum Resource Management System ("PRMS") Guidelines as well as the 2011 Guidelines for Application of the PRMS approved by the SPE.
Contingent Gas Resources are (100%) Unrisked Gross
The previous assessment of Contingent Resources attributed to ATP 529 was prepared by SRK Consulting (Australasia) Pty Ltd and details of these were released to the market in the company's announcement on 30 June 2011 (2011SRK).
SRK the author of the report attributing contingent resources to Galilee Energy as at 30 June 2011 has consented to the reporting of these resource figures in the context and manner in which they appear in this announcement.
For the purposes of Listing Rule 5.25.3 the Table records the total estimate of contingent resources attributable to Galilee Energy. No petroleum reserves have been attributed to Galilee Energy.
In accordance with Listing Rule 5.34.3, Galilee Energy confirms that it is not aware of any new information or data that materially affects the information in the announcement to the market of the Contingent Resources 30 June 2011 and that all of the material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.
For further information contact:
Peter Lansom Managing Director Galilee Energy Limited
+61 7 3177 9970
[email protected]
www.galilee-energy.com.au
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ASX/MEDIA ANNOUNCEMENT
About Galilee
Galilee's Board and management are focused on building and expanding its asset mix to create a mid-tier exploration and production company. Galilee has a clear plan to grow shareholder value and the capacity to execute.
Strong Balance sheet
Proven successful Board and Management
New strategic direction
Directors
Chairman - David King
Managing Director - Peter Lansom
Executive Director - Paul Bilston
Non-executive Director - Ray Shorrocks
Shares
Shares on issue - 152,140,466
Top 20 holders - 55.51% *
Directors and Management - 7.23%
*As at 6 July 2015
www.galilee-energy.com.au
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