Galilee Energy's June 2024 Quarterly Report: Key Updates and Financial Health
GLL (GLL) Share Update July 2024 Wednesday 24th
Galilee Energy Provides Positive Update on Glenaras Gas Project
Galilee Energy Limited (ASX: GLL) has released its June 2024 Quarterly Report, highlighting significant progress in its Glenaras Gas Project and maintaining a robust financial position with $3 million in cash and no debt.
Instant Summary:
- Continued analysis of the updated Glenaras Integrated subsurface model.
- Glenaras pilot remains online, consistent with the March Quarter.
- Glenaras data room remains open and active.
- Strong focus on cost control.
- Cash equivalent of $3 million retained with no debt.
Project Updates
Galilee Energy Limited (ASX: GLL) has provided an update on its Glenaras multi-well pilot program in the Galilee Basin, Queensland. The Glenaras Gas Project, which is 100% owned by Galilee, covers approximately 3,200 km2. The pilot remains online, consistent with the previous quarter, with a rotation strategy in place to collect further subsurface data.
The integrated subsurface model has been updated with contemporary pressure data and the recently acquired Glenaras Pad 3D Seismic Survey. This has provided increased resolution of the structural and stratigraphic architecture of the Betts Creek Beds. The revised modeling exercise is crucial for progressing the pilot into achieving commercial gas rates and maturing the material Contingent Resource certified in ATP 2019.
Other Projects
The Kumbarilla Project (ATP 2043) continues to focus on defining a potential low-cost, high-value 2D seismic survey to mature strong oil leads to drillable status. The proximity to the Moonie oil field, which has produced around 24 million barrels of oil, confirms the high prospectivity of ATP 2043.
Technical evaluation of the conventional gas prospectivity of the Wandana Prospect in ATP 2050 is ongoing, with strong indications of gas pools in multiple, stacked reservoirs throughout the Permian section.
Corporate and Financial Health
Galilee Energy emphasizes the importance of new gas supply for energy security, especially as Queensland targets a 70% renewable energy goal by 2032. The company is well-positioned to assist, given its large uncontracted gas resources in eastern Australia.
During the quarter, Galilee Energy maintained a disciplined approach to expenditure, spending only $0.47 million on exploration and evaluation activities. The company also made a liquid share investment and paid annual insurance premiums and permit fees. As of June 30, 2024, Galilee Energy holds approximately $3 million in cash equivalents with no debt.
The ongoing progress in the Glenaras Gas Project and the company's strong financial position are positive indicators for Galilee Energy's stock. The robust east coast gas market dynamics and the company's strategic focus on cost control and project advancement are likely to bolster investor confidence. The potential for new gas supply to address market shortages further enhances the company's prospects.
Investor Reaction:
Investors and analysts have responded positively to the updates, noting the company's disciplined expenditure and strategic focus on advancing its key projects. The strong financial position with no debt is seen as a significant advantage in the current market conditions.
Conclusion:
Galilee Energy's June 2024 Quarterly Report highlights significant progress and a strong financial position, making it a company to watch in the coming months. Investors should stay informed about further developments in the Glenaras Gas Project and other key initiatives.