Galilee Energy Limited (Galilee) today announced the signing of a contract between AGL Energy Limited (AGL) and Ensign Australia Pty Ltd to secure a drill rig for the Glenaras coal seam gas production pilot at Rodney Creek.

Galilee and AGL entered into a farmin agreement in July this year under which AGL would fund and operate a two stage coal seam gas exploration and development programme at ATP 529P in the Galilee Basin in Central Queensland. The Rodney Creek area is located in the south of the tenement.

The Glenaras Pilot is stage one of this programme. It will consist of five wells, all of which will be drilled to a total depth of approximately 1,100 metres. Three wells will be fracture stimulated in the Lower Betts Creek seams and two will be under-reamed.

Ensign Rig 20 will be mobilised to the area on September 29 with the spudding of the first well anticipated in early October. Drilling is scheduled to complete by early December.
Eastern Corporation Limited holds 68% of Galilee.

For further information contact:

Sam Aarons
Manager, Business Development & Corporate Relations

Tel: 07 3216 1155
Fax: 07 3216 1199

Email: info@easterncorp.com.au