Galilee Energy (ASX: GLL) has secured additional lease agreements associated with the Zydeco gas project on the US Gulf Coast.
The move comes after company recently announced a major refresh of its board and a pivot away from its long-time Australian oil and gas focus onto the Zydeco project, located in Louisiana’s Acadia parish.
Galilee says the consolidation of the Zydeco leases will support its drilling and development plans, and ensures it will be able to optimise drilling locations and development of the project.
Backed by a recent $6.5 million placement the company is aiming to bring the discovery online as soon as possible, with the process of contracting a rig to drill the Zydeco-1 production well already underway.
Fast-Track and Low-Risk Opportunity
Galilee has identified what it views as a fast-track and low-risk development within a proven gas and condensate field that now covers a leased area of more than 325 acres.
Zydeco’s existing facilities comprise condensate stripping, storage and truck loading, gas dehydration, metering and measurement.
The project also has ready access to sealed roads, as well as a 1.6-kilometre gas spur line to a tie-in with the Texas Gas pipeline.
Chief executive officer Joseph Graham said securing additional mineral leases was an important step for the transformative Zydeco project that “now positions the company to potentially deliver early production and cash flow supporting the company’s strategic direction to grow as a mid-tier US producer.”
Busy Corporate Period
Galliee confirmed the appointment of Mr Graham in mid-December, along with directors Eduardo Robaina and Dale Hanna, at the same time announcing the immediate resignation of directors Ray Shorrocks, Greg Columbus, and Stephen Kelemen.
The company announced the changes not long after the termination of its proposed merger with Vintage Energy (ASX: VEN).
The new board is aiming to commence drilling at Zydeco as soon as it has finalised the transaction, which will be voted on at general shareholder meeting at the end of January.
That will put it on target to achieve first production less than six months after spudding of the well.
