Galilee Energy Commences Zydeco-1 Drilling Targeting 13.7 Bcf Gas and 610,000 Barrels Condensate

Zydeco-1 Well Drilling Officially Underway

Galilee Energy (ASX:GLL) has officially spudded its Zydeco-1 well in Acadia Parish, Louisiana, marking a pivotal step in its US Gulf Coast oil and gas strategy. The commencement of drilling transitions the project from site preparation into active operations, with the rig now turning to test a large conventional gas-condensate target.

The Zydeco-1 well is designed to tap into unrisked prospective resources estimated at up to 13.7 billion cubic feet (Bcf) of gas and 610,000 barrels of condensate across the Upper and Lower Tweedle formations. Galilee holds a 100% working interest and a 70% net revenue interest in the project.

Drilling Program and Key Milestones

The drilling program is structured in stages, beginning with setting surface casing at approximately 2,200 feet true vertical depth (TVD) to secure the wellbore. It then advances to the intermediate section at 9,319 feet TVD with logging while drilling across the Homeseekers B-sand, followed by drilling to the Upper Tweedle at 9,577 feet and the Lower Tweedle at 9,975 feet TVD.

The critical upcoming milestone will be the electric logging of the Tweedle formations, expected by late July 2026. These logs will provide detailed downhole measurements to confirm the presence of hydrocarbon pay and assess reservoir quality. Should these results prove commercially viable, Galilee plans to swiftly move into well completion, surface facility construction, and tie-in to the Texas Gas Pipeline, with announcements anticipated in August 2026.

Positioned as a Low-Risk Offset in a Proven Fairway

Zydeco-1 is strategically located near the historic MacCabees et al No. B-1 well, drilled in 1950, which demonstrated gas production from the Upper Tweedle sandstone. Galilee’s well sits approximately 300 feet up dip from this proven zone, reducing subsurface uncertainty and supporting a low-risk drilling target. The area benefits from extensive 3D seismic data and historical well information, underpinning resource estimates and reservoir continuity.

The project’s proximity to existing infrastructure, including a short gas spur line to the Texas Gas Pipeline, enhances its potential for rapid commercialisation. Galilee’s Managing Director Joseph Graham emphasised the significance of this moment, highlighting the well’s capacity to "change the scale and direction of the Company" if successful.

Foundation for Scalable Gulf Coast Growth

Zydeco-1 represents the first phase in Galilee’s broader strategy to build a scalable US Gulf Coast oil and gas business. The company is targeting low-risk development and redevelopment opportunities aimed at near-term production and cash flow generation, supported by disciplined capital allocation and a repeatable growth model.

Galilee’s US Advisory Board, composed of seasoned oil and gas operators and technical specialists with Gulf Coast experience, has played a key role in advancing Zydeco-1 from acquisition to drilling within a short timeframe. The board is also assisting in sourcing additional opportunities, with funding arrangements expected to be formalised following Zydeco-1’s success.