Galilee Energy has broadened its Zydeco Oil & Gas Project sidetrack to evaluate seven distinct hydrocarbon targets from a single wellbore in Louisiana, adding five new shallow oil prospects with a combined unrisked gross prospective resource of up to 423,000 barrels.
- Sidetrack now targets seven oil and gas intervals including five new shallow oil zones
- New shallow targets add up to 422.6 kbbl gross prospective oil resources (3U)
- Stafford Formation shows gas-condensate potential supported by nearby analogue well
- Upper Tweedel remains primary deep gas objective
- Final sidetrack design and drilling pending approvals and contractor availability
Expanded Sidetrack Targets Multiple Hydrocarbon Zones
Galilee Energy Limited (ASX:GLL) has significantly upgraded its Zydeco Oil & Gas Project in Louisiana by expanding the planned sidetrack well to evaluate seven separate oil and gas targets from a single wellbore. This broadens the scope beyond the initial focus on the Stafford gas-condensate and Upper Tweedel formations, incorporating five newly identified shallow oil targets that add substantial near-term upside potential.
The five shallow zones; Borsum, Richie, Discorbis gravelli, First Het, and Homeseeker B; were identified through detailed analysis of original Zydeco-1 well data combined with seismic interpretation and regional well information. Collectively, these shallow targets hold an unrisked gross prospective resource estimated at 317,000 barrels on a best-case (2U) basis, rising to 422,600 barrels on a high-case (3U) basis, materially increasing the number of hydrocarbon intervals available for evaluation during the sidetrack.
Gas-Condensate Potential in Stafford Formation
While drilling the original Zydeco-1 well, gas readings indicated it terminated within the Stafford Formation, which is a known gas-condensate play. A nearby analogue well, R.L. Bucklin #1 in Jefferson Davis Parish, tested 1.2 million standard cubic feet per day (MMscf/d) of gas and 48 barrels per day of condensate from an 8-foot interval in the Lower Frio Stafford. This analogue confirms the formation’s potential to produce gas and condensate, although reservoir continuity and deliverability at Zydeco remain unproven. At this stage, no prospective resource has been assigned to Stafford.
Upper Tweedel Remains Key Deep Objective
The Upper Tweedel formation continues to be the primary deep target. The original wellbore closely matched pre-drill stratigraphic models before drilling was interrupted, increasing confidence in the expected depth and structure. The sidetrack is planned to extend through the shallow targets and Stafford before evaluating Upper Tweedel, with the existing prospective resource estimates for Upper and Lower Tweedel unchanged from previous disclosures.
Next Steps and Project Positioning
Galilee’s immediate priorities include finalising the sidetrack design, directional drilling plan, and data acquisition program, which will incorporate logging, formation pressure testing, and fluid sampling. Contractor arrangements and mobilisation are also being progressed, with drilling subject to approvals, funding, and operational conditions.
Managing Director Joseph Graham emphasised the value unlocked by the original Zydeco-1 well data, saying the expanded sidetrack design aims to capture multiple stacked targets within a compact lease near existing Gulf Coast infrastructure. The company is focused on collecting the necessary data to make informed commercial decisions should movable hydrocarbons be encountered.
Galilee holds a 100% working interest and 70% net revenue interest in the 325-acre Zydeco project, which benefits from extensive 3D seismic coverage and proximity to existing gas infrastructure. The sidetrack approach leverages existing well infrastructure, offering a cost-efficient path to complete the geological evaluation.
Bottom Line?
Galilee’s expanded Zydeco sidetrack opens multiple pathways to commercialisation but hinges on final engineering and successful data acquisition to confirm moveable hydrocarbons.
Questions in the middle?
- Will the sidetrack confirm commercial quantities of moveable hydrocarbons across the newly identified shallow targets?
- How will the gas-condensate potential at Stafford influence project economics if confirmed?
- What timeline and funding will be required to progress from sidetrack evaluation to potential development?