Zydeco-1 Well Set for July Spud with Fixed-Price Rig Contract

Rig Contract Secures Drilling Schedule and Cost Certainty

Galilee Energy (ASX:GLL) has crossed a major operational threshold by executing a fixed-price drilling contract with RFC Drilling, LLC for Rig 103, securing the Zydeco-1 well spud for the first week of July 2026. This move significantly mitigates the scheduling and cost risks that often plague drilling campaigns in the competitive US Gulf Coast market, locking in daily rates, mobilisation, and core drilling services under a firm price.

Managing Director Joseph Graham emphasised the milestone as the project’s transition from planning to execution, allowing the company to shift focus to final operational readiness and site preparations. The contract not only guarantees rig availability but also provides budget certainty amid volatile service costs, a crucial factor for a mid-tier explorer advancing its Gulf Coast ambitions.

Zydeco-1 Targets Multiple Reservoirs with Significant Resource Potential

The Zydeco-1 well aims to reach approximately 10,000 feet, targeting the Upper and Lower Tweedel formations, with prospective resources estimated at up to 8 billion cubic feet (Bcf) of gas and 0.5 million barrels of condensate or oil. These figures align with prior technical evaluations that place the project within a proven gas-condensate fairway, surrounded by producing fields such as Indigo and Frey just a few kilometres away.

Extensive wireline logging and testing planned during drilling will refine the understanding of reservoir quality and commercial viability. The project benefits from proximity to a short gas spur line connecting to the Texas Gas Pipeline, enabling rapid commercialisation if successful. This infrastructure advantage is a key factor in the company’s plan to target first production within six months of a successful well, offering a relatively swift path to revenue generation.

Operational Readiness and Project Timeline

With the rig contract signed, Galilee is now concentrating on executing remaining service agreements and completing site logistics. The company is maintaining strict schedule discipline to meet the July spud date, reflecting the operational progress noted in recent updates, including the Zydeco Gas Project drill-ready status and finalised well design with cost savings.

Galilee’s strategic positioning in the Gulf Coast is further supported by the appointment of a US Advisory Board, which has been instrumental in advancing the project’s execution phase and guiding the company’s entry into the region’s oil and gas sector. The upcoming drilling campaign will test the commercial potential of the Zydeco acreage, which holds one of the company’s foundation assets alongside its Australian Glenaras Gas Project.

Commodity Pricing and Economic Potential

The drilling commitment comes amid a backdrop of strong oil, gas, and condensate prices, which materially enhance the project’s prospective economics. While the resource estimates remain prospective and un-risked, with a 75% chance of discovery and development, the fixed-price rig contract and proximity to established infrastructure reduce execution risk and support a clearer economic pathway.

Galilee’s focus now turns to the spudding of Zydeco-1 and subsequent well testing, which will be pivotal in confirming commercial quantities of hydrocarbons and unlocking value from this Gulf Coast opportunity.