Galilee Energy (ASX:GLL) is set to start sidetrack drilling at Zydeco on Monday, 28 September, with the rig already on site and five shallow oil targets firmly in focus.
The sidetrack is designed to test the oil potential identified in the original Zydeco-1 well while preserving the option to use the well for production if testing is successful.
Five oil targets now take priority
The program will target five shallow zones:
Borsum, Richie, Discorbis gravelli, First Het and Homeseeker B.
These intervals were identified from the original Zydeco-1 well and now form the centre of Galilee’s near-term drilling plan.
The company’s deeper Stafford and Tweedel gas-condensate targets remain in the picture, but they have been pushed to a potential future dedicated well.
That leaves the current campaign with a much cleaner objective.
Test the oil, see whether it flows, and preserve a path to production.
Fully funded and ready to drill
Galilee expects the sidetrack and testing program to be funded from its recent A$3.5M placement, with no additional funding currently anticipated.
That gives the company the capital to move straight into the next phase without having to stop and raise again before testing Zydeco’s oil potential.
With the rig already sitting at Zydeco-1, the operational lead-in is also short.
Figure 1: RFC Drilling Rig 103 currently located at Zydeco-1 site and preparing to drill.
More than a sidetrack
The key part of this program is that Galilee is not just drilling for information.
The sidetrack has been designed so it can potentially become an oil production well if drilling, formation evaluation and testing deliver the right result.
That gives this next phase a clear commercial angle.
A successful well would not simply validate the oil targets, it could establish the first route toward production.
What comes next
The immediate catalyst is straightforward.
Sidetrack drilling starts Monday.
After that, the market will be watching for formation evaluation, testing results and any sign that one or more of the five shallow zones can support production.
Zydeco’s story has widened, the deeper gas-condensate targets are still there.
But for now, Galilee is going after the oil.
