Galilee Energy : June 2022 Quarterly Report & Appendix 5B

ASX / MEDIA ANNOUNCEMENT

June 2022 Quarterly Report
& Appendix 5B
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29 July 2022
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HIGHLIGHTS
	• Drilling of 6 additional wells at Glenaras completed within budget despite
personal	•	unseasonal rainfall.
Net cash balance at June 30 was $16.2 million with no debt.
	•	All existing pilot wells were back online shortly after quarter end with

water rates exceeding pre-drill programme rates and currently around 19,000 BWPD.

• All surface facilities work on track for end-July completion.

• Targeted time frame for maiden reserves booking remains Q1 2023.

• Balance sheet further strengthened via R&D tax refund and completion of

SPP.

Galilee's Managing Director, David Casey commented:

An outstanding quarter of progress for Galilee with the Glenaras drilling programme successfully Forconcluding. At the outset of the programme I was firmly of the view that following its completion the Company would be well placed to achieve production rates that should see an anticipated maiden

reserve booking for Glenaras in the first quarter of 2023.

Galilee has made an unambiguous move forward towards a long awaited step change in its status from an explorer to a key gas supplier into an extraordinarily tight eastern Australia gas market.

Registered Address	Level 6, 167 Eagle St,	E: [e-mail]	ASX Code
Galilee Energy Limited	Brisbane QLD 4000	P: [phone]	GLL
ACN 064 957 419	GPO Box 1944	galilee-energy.com.au

onlyGlenaras Gas Project (ATP 2019) - Galilee 100% use

Galilee Energy Limited (ASX:GLL) ("Galilee") is pleased to provide an update on the Glenaras multi-well pilot programme ("Pilot") in the Galilee Basin in Queensland (Figure 1). The Glenaras Gas Project ("Project") is located in ATP 2019, which is 100% owned and operated by Galilee. The Permit covers an area of approximately 3,200 km2.

personalFor	Figure 1 - Glenaras Gas Project

The Glenaras drilling programme was completed during the quarter. Originally conceived as a five well programme of vertical wells drilled around the southwestern flank of the existing Pilot, a 6th well was added to the plan during the quarter (Figure 2). This additional well was made possible in large part by the R&D refund received during the quarter and in particular the experience gained from successfully drilling adjacent to and through the fault in the southern part of the Pilot.

The objective of the multi-well programme was to capitalise on over $100m of previous exploration and appraisal expenditure and

materially	advance	Glenaras
towards	commerciality.	More
specifically, the programme was
designed	to	accelerate
depressurisation of	the	Betts
onlyCreek coals and adjacent sands
to initiate gas desorption and
use	commercial	gas
achieve
production in support of a
material	maiden	reserves

booking in early 2023.

Figure 2: Glenaras Pilot well locations and schematic

With six wells now drilled, the results are confirming the geological model as interpreted. The Betts personalCreek Beds coal seams are well developed, gas-bearing and laterally continuous across the Pilot area (Figure 2). The seams can also be correlated up to 20 km further away, supporting the significant

contingent resource certified for the Betts Creek Beds coal seams. Galilee continues to expect a maiden reserve booking in early 2023.

The Project continues to enjoy the enviable status as one of the largest contingent gas resources on the east coast of Australia and is strongly positioned to help address AEMO's forecast eastern Australian domestic market gas shortfall expected from around 2023. The Project's independently derived and certified Contingent Resource* estimates are included in Table 1.

For

		Category	Contingent Resource (PJ)		Area (km2)
		1C	308		~36
		2C	2,508		~1,200
only		3C	5,314		~2,500
	Table 1: Glenaras Gas Project Contingent Resources Estimate

By the end of the quarter, two existing wells were back on production. Shortly after the end of the period, all the existing Glenaras Pilot wells were back online with water rates exceeding pre-drill programme rates of around 18,000 BWPD. Notably, despite the extended shutdown due to numerous userainfall events during the drilling programme, which naturally saw reservoir pressure increase across the Pilot, we continue to see excellent reservoir connectivity and continued good pressure drawdown

across the current wells. personalFor

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personalKumbarilla Project (ATP 2043) - Galilee 100%

High grading of future drilling locations for both conventional oil and gas and coal seam gas remain the priority for ATP 2043. This work is focusing on the integration of the reprocessed 675km of 2D seismic with the existing regional well control, the Kumbarilla Central 1, 2 & 3 exploration wells and the adjacent PL 1009 pilot production data gained from the data exchange with Shell.

ForSpringsure Project (ATP 2050) - Galilee 100%

Multiple conventional gas prospects, which are analogous to the adjacent northern Denison Trough gas fields, have been identified in ATP 2050 with each prospect potentially hosting gas pools in stacked, Early to Late Permian reservoirs. Final subsurface assessments are currently underway to determine volumetrics estimates and optimum drilling designs.