Galilee Energy has raised the drilling derrick at its Zydeco-1 well in Louisiana, marking the last major pre-spud milestone. Drilling is set for early July 2026, aiming at a substantial Gulf Coast gas-condensate resource with rapid commercialisation potential.
- Derrick raised and rig fully mobilised at Zydeco-1 well site
- Drilling scheduled for first week of July 2026 on track and within budget
- Targeting up to 13.7 Bcf gas and 610,000 barrels condensate
- Project underpins Galilee’s US Gulf Coast growth strategy
- Pathway to production within six months post-drilling success
Derrick Raise Signals Final Pre-Spud Milestone
Galilee Energy (ASX:GLL) has reached a pivotal moment at its Zydeco Gas Project in Louisiana, with the drilling derrick now raised vertical and standing over the Zydeco-1 well centre. This marks the transition from rig mobilisation to final rig-up, signalling that all major visible preparations are complete ahead of the planned spud in early July 2026.
The company’s RFC Drilling Rig 103 arrived on site and completed key pre-spud activities, including conductor pipe installation, cellar preparation, and survey verification to ensure precise rig alignment. The derrick raise is the last significant rig assembly step before drilling operations commence.
On Schedule and Within Budget
Galilee reports that operations have proceeded safely, on time, and within the planned budget, with no material issues identified that could delay the spud. The coordinated efforts of drilling, construction, survey, and lifting contractors have maintained momentum through geological evaluation, permitting, and site build phases.
The company remains on track to begin drilling the Zydeco-1 well in the first week of July, targeting a total depth of approximately 9,800 feet. Post-drilling activities will include wireline logging, evaluation, and testing to assess the well’s commercial potential.
Substantial Prospective Resources in Proven Gulf Coast Fairway
Zydeco-1 targets a large conventional gas-condensate accumulation within the Upper and Lower Tweedel formations, located in a proven Gulf Coast fairway. The unrisked prospective resource estimate reaches up to 13.7 billion cubic feet (Bcf) of gas and 610,000 barrels of condensate before royalties.
The project benefits from modern geological interpretation and 3D seismic data, with nearby producing fields such as Indigo and Frey located within a few kilometres. The proximity to a Texas Gas Pipeline spur line offers a clear route to rapid commercialisation.
Foundation for Scalable US Gulf Coast Growth
Zydeco-1 represents the first execution point in Galilee’s US Gulf Coast growth strategy, which focuses on low-risk development opportunities capable of delivering near-term production and cash flow. The company aims to replicate this model through disciplined capital allocation and reinvestment, supported by a US Advisory Board with extensive regional experience.
The Advisory Board has played a key role in advancing Zydeco from acquisition to drilling readiness and is actively involved in identifying further opportunities. Funding and participation structures for follow-on projects are expected to be formalised after Zydeco-1’s results.
Next Steps and Commercialisation Pathway
Following a successful drilling campaign, Galilee plans to move quickly toward commercial production, leveraging existing regional infrastructure. The company targets first production within approximately six months of a successful well result, positioning Zydeco as a potential near-term catalyst.
Galilee will continue to update the market as drilling progresses and evaluation results become available, keeping investors informed on this transformative Gulf Coast asset.
Bottom Line?
With the rig fully mobilised and final pre-spud checks underway, Galilee’s Zydeco-1 well is poised to test a significant Gulf Coast gas-condensate resource that could reshape the company’s US growth trajectory.
Questions in the middle?
- Will Zydeco-1 confirm commercial quantities to justify rapid development?
- How will Galilee fund and structure follow-on Gulf Coast opportunities post-Zydeco?
- What market conditions could impact the timing and economics of rapid commercialisation?