Galilee moves Zydeco-1 toward five-target oil test
Galilee Energy will begin sidetracking the Zydeco-1 well on 28 September to test five shallow oil zones in Louisiana. The A$3.5 million program is funded, but any move into production still depends on drilling, evaluation and flow-test results.
- Zydeco-1 sidetrack scheduled to start on 28 September 2026
- Five shallow oil zones prioritised for drilling and testing
- Existing rig is already on site
- A$3.5 million placement expected to fund the program
- Deeper Tweedel gas-condensate targets deferred to a future well
Zydeco sidetrack scheduled for 28 September
Galilee Energy Ltd (ASX:GLL) is moving from planning to execution at its Zydeco Oil & Gas Project, with the Zydeco-1 sidetrack scheduled to begin on Monday, 28 September 2026. The drilling rig is already on site, reducing the announcement to a clear operational milestone rather than another revision to the well plan.
The sidetrack will target five shallow oil zones identified from the original well: Borsum, Richie, Discobris gravelli, First Het and Homeseeker B. Galilee says the well design is intended to preserve the option of using the sidetrack as a future oil producer if drilling, formation evaluation and testing support that outcome.
Five oil targets replace the immediate deep-well focus
The company is prioritising the shallow intervals while leaving the deeper Stafford and Tweedel gas-condensate objectives for a dedicated future well. That sequencing gives Galilee a narrower near-term test, but it also means the upcoming program will not resolve the full range of Zydeco's oil and gas potential.
The filing's resource tables assign the five shallow targets a combined net-after-royalty 3U prospective oil volume of about 295.9 thousand barrels, based on the individual entries. Those volumes are prospective and unrisked: they have not been adjusted for the stated 65% chance of discovery and development, and they do not represent booked reserves or confirmed recoverable production.
Placement funds drilling and oil testing
Galilee expects the sidetrack and oil testing program to be funded from its recent A$3.5 million placement, with no additional funding currently anticipated for this work. That removes an immediate financing question from the program, although the announcement does not disclose how much of the placement has been spent or provide a cost estimate for any subsequent production facilities.
The scheduled start remains conditional on final engineering approval, regulatory requirements and normal operating conditions. Even if the five intervals contain moveable hydrocarbons, a production decision will depend on the results of drilling, formation evaluation and testing. The appendix also refers in one place to a “JD Sittig 1 Sidetrack”, rather than Zydeco-1, an apparent naming inconsistency that may need clarification as the program progresses.
Bottom Line?
The next value-changing evidence will come from wireline data, formation tests and flow results, not the scheduled spud date itself.
Questions in the middle?
- Will the sidetrack encounter oil-bearing intervals with sufficient quality and continuity to support flow testing?
- How quickly could Galilee move from successful testing to a production decision?
- Will the company need fresh capital if testing expands beyond the currently funded program?
