The Galilee Energy story is just starting. Just a few things for...

The Galilee Energy story is just starting. Just a few things for your weekend reading….

1. Strong cash position of $10.2 million as of a March 2018. Debt-free.

2. Jemena deal -GLL signed a binding agreement with Jemena. Jemena’s plans to expand and extend its Northern Gas Pipeline (NGP), via the Galilee Basin, to the largest gas markets on the east coast.

3. Glenaras Gas Project– GLL 100% strategically located in western Queensland's Galilee Basin. GLL’s permit (ATP 2019) covers an area of approximately 4000 km2 and is 100% owned and operated by Galilee Energy Limited. Excellent connection though the coal reservoir over large areas has been achieved. This means that fewer wells will be required in a future development than previously anticipated. The strong drawdown at Glenaras 4 also confirms water production is coming from the coal only, and not from neighbouring sandstones which is a key positive result for the Project.

_{Rig on Glenaras 10 location}

As of June 2018, surface facilities including separator and metering skids along with flowlines fully installed.
*Initial production tests conducted on both wells with excellent flow results. Water rates of
greater than 750 BWPD were achieved with less than 10% reservoir pressure drawdown.
*Production will be ramped up over the coming weeks to achieve full reservoir drawdown. Peter Lansom (MD) is extremely encouraged by the deliverability results from these flow tests. The rates represent the upper end of GLL’s pre-drill expectations. With these flowrates producing from a three-metre coalwhich is well bounded by shales, the team is now extremely confident of achieving the reservoir drawdown within the pilot area needed to achieve commercial gas rate targets.

4. Peter Barry Lansom- (Managing Director)- Has over 25 years' experience in conventional and unconventional exploration and development, working with Comet Ridge Ltd, Eastern Star Gas (ESG), Origin Energy and Santos. He has expertise in subsurface engineering, asset valuation, field development planning and commercial and corporate finance. In his past role at Origin, in the key management position of chief petroleum engineer, he had responsibility for delivering the corporate year end petroleum reserves report and ensuring that consistently high standards in sub-surface engineering were maintained across that Company's assets. In his recent role as executive director at ESG, Peter had overall engineering responsibility for the exploration and pilot development of the Company's CSG assets in NSW which resulted in certifying 3P reserves of over 3500 PJ over a 5 year period, and saw the Company grow to a $900 million market capitalisation.

5. Stephen Gyula Kelemen (Non-Executive Director) was a primary driver behind the entry of Santos into the coal seam gas business that is now a principal source of gas for that Company's Gladstone LNG project. Stephen was also involved in the entry of Santos into the MacArthur and Beetaloo Basins shale gas projects in the Northern Territory.

6. Lavaca County - Texas Gulf Coast
Galilee holds a large lease position in JV with other parties over the Lower Wilcox play in Lavaca County, Texas. While there has been no exploration activity during the half-year, there is farm-in interest for the acreage from third parties. The JV is currently assessing these proposals.

7. Kansas Shallow Oil & Gas (farming in to earn up to 75%WI)
Galilee has a 345,000-acre Area of Mutual Interest in Meade County, Kansas. Galilee completed a 3D seismic survey over a portion of this
acreage in early 2015. Since that time Galilee has refined the prospects identified by the survey and has identified a number of drillable prospects. Galilee is the Operator for the JV.

8. Chile
The Company completed its evaluation and study of the Coal Seam Gas (CSG) potential in the Southern Magallanes Basin in Chile late 2015.
Galilee has submitted a draft application to the Chilean government for an exploration permit application (CEOP) over an area of almost 6,000 sq.km.