Galilee Energy Limited provide the following production operations update on the Glenaras multi well pilot . On the back of remedial operations on Glenaras 26, the Pilot has achieved a record gas rate in excess of 100 Mscfd. With all 16 wells online and pumping, the declining water rates are indicative of decreasing reservoir pressure over an area not seen previously at the Pilot.

Notably while still predominantly solution gas, this is the first time that the gas rate, and in particular the annulus gas or gas primarily from the target seams, has shown an increasing trend, or remained steady with concurrent decreasing water rates, and is evidence that a larger area of the Pilot is approaching the desorption pressure window. Importantly, the reservoir pressure sink has been observed to be both deepening and widening across the Pilot. A reduction in pressure has been observed at the Glenaras 14L monitoring well following the recent remedial work on Glenaras 26, and Glenaras 14L has recorded its lowest pressure since commencement of the Pilot.

A recent, brief shut-in of Glenaras 21 indicated that the pressure at this location is now at the lowest point observed on record and is under the anticipated desorption pressure window. Additionally, the distal Rodney Creek 8 well continues to demonstrate declining pressures. In summary, the recent increasing gas production trend demonstrates that the focus of continuing to drive the reservoir pressure lower and getting more coal under the desorption pressure is beginning to achieve the desired results.