Galilee Energy Ltd. has provided a development update at its Zydeco Oil & Gas Project in Louisiana, redesigning its planned sidetrack well to target five stacked shallow oil zones identified in the original wellbore.
The shallow targets, comprising the Borsum, Richie, Discorbis gravelli, First Het, and Homeseeker B sands, contain a combined gross 3U Prospective Oil Resource of up to 422,600 barrels, or 295,800 barrels net after royalties.
Positioned directly above the project’s deeper gas-condensate objectives, all five formations were quantified using logging-while-drilling data from the initial drill hole and are fully accessible from the existing wellbore.
Galilee has pivoted to prioritise the shallow oil due to the vastly superior economics of crude oil compared to natural gas in the US Gulf Coast market. The sidetrack is now explicitly configured as a potential oil production well, offering a fast-track pathway to commercial production and near-term cash flow in the event of testing success.
“This is an outstanding result for Zydeco and a genuine step-change for Galilee,” said Managing Director Joseph Graham.
“We went into Zydeco-1 with Tweedel as the primary target, but the original well has delivered something even better in the shallower section. Oil commands materially stronger economics than gas, so our priority is clear: test the oil and, if successful, bring this well on as an oil producer.”
The company confirmed that the original deeper gas-condensate targets, including the Tweedel sands, which host up to 13.7 billion cubic feet of gas and 610,000 barrels of condensate (3U), remain high-value assets.
However, to avoid compromising the shallow oil completion, these deeper zones will be evaluated via a dedicated future well.
The revised sidetrack and testing program is fully funded via Galilee’s recent AU$3.5 million placement, requiring no additional capital raise.
Engineering designs, logging plans, and contractor arrangements are currently being finalised ahead of commencing sidetrack operations.
