Galilee Energy says wells 19, 20 and 23 at its Glenaras gas project near Longreach have been commissioned and will be brought into full production this week.
The company said the remaining three wells at the Galilee Basin site were awaiting pumping equipment from the United States, which was experiencing shipping delays associated with COVID-19.
“The first item of this equipment has landed in country and is expected on
site in approximately two to three weeks,” the company said an update to the ASX today.
“All surface production equipment for the remaining three wells has been delivered to location and spotted on the well-sites.”
The Glenarus project has one of the largest contingent gas resources
on the east coast and Galilee Energy says it is strongly positioned to supply the AEMO’s forecast eastern Australian domestic market gas
shortfall in the early 2020’s.
The project’s certified contingent resource within the Betts Creek coals includes 1C of 308 PJ, 2C of 2508 PJ and 3C of 5314 PJ.
The company has an agreement with energy infrastructure company Jemena to work together to deliver gas from the Glenaras gas project to the east-coast domestic gas market.
Galilee Energy also reported ‘remarkable progress’ with its Glenaras irrigation trial.
This uses produced water from the CSG project without any treatment required due to the high quality of the water.
Thje company said a centre pivot irrigation system was now fully operational and the forage sorghum crop was growing rapidly.
This is expected to result in significant assistance to landholders for livestock management and is providing proof-of-concept for a scalable, low-cost solution for produced water at the project.