Key points
- Five stacked oil targets identified with up to 422.6 kbbl gross Prospective Oil Resources
- Oil offers stronger economics than gas, making it the priority
- Sidetrack redesigned as an oil producer, fully funded by recent A$3.5 million placement
Full summary
Galilee Energy Ltd. announced a significant oil discovery at its Zydeco Oil & Gas Project in Louisiana. The company identified five stacked oil targets with up to 422.6 kbbl of gross Prospective Oil Resources, located above the original gas-condensate targets. Oil offers stronger economics than gas, making it the priority. The Zydeco-1 sidetrack has been redesigned as a potential oil producer, fully funded by the recent A$3.5 million placement, with no additional capital required.
Outlook
Galilee Energy plans to finalize the oil-focused sidetrack design, formation evaluation, and testing program across the five shallow oil zones. The company expects to commence the sidetrack subject to final engineering approval, contractor availability, regulatory requirements, and normal operating conditions.