Galilee Energy plans Zydeco-1 sidetrack, with no start date given

Galilee Energy (ASX:GLL) says its Zydeco-1 well will require a sidetrack involving a kick-off from the existing casing at approximately 2,760 feet. The statement was made on 25 August 2026. The company has not stated when the work will happen. The window of 25 August to 23 November 2026 used here is only the span in which the item could fall, not a schedule.

What is happening

A sidetrack means drilling a new path out of an existing well rather than starting a fresh hole. The company's announcement titles say the sidetrack is meant to "unlock seven oil and gas targets" and follows a placement completed "to test gas-condensate targets at Zydeco". The material provided does not give well costs, depths beyond the kick-off point, or target size.

Why it matters, in context

Zydeco does not appear among the assets in the valuation inputs, and no estimate or company interest is given for it. Those inputs are:

• Glenaras Gas Project: 2,508 PJ contingent gas (P50, March 2025), 100% interest
• Kumbarilla Project: 504 PJ contingent gas (P50, March 2020), 100% interest
• Hoffer B: 70 bcf prospective gas and 1.8 mmbbl prospective oil (P50, August 2014), 35% interest
• Five other contingent gas projects, estimated between 2018 and 2019, with the company's interest not disclosed

If Zydeco succeeds, it would add a different kind of asset, oil and gas-condensate, to a portfolio that is mostly gas. That is an inference, not something the company has said. Several estimates above are years old, so they may not reflect current views.

What is uncertain

• No start date or duration has been given.
• The company has not said what a successful result would look like.
• Zydeco's ownership is not disclosed in the inputs.

The company also lodged a cleansing prospectus on 25 August. It offers up to 1,000 shares at $0.0045 to raise up to $4.50. It was prepared mainly to remove trading restrictions on shares issued earlier, and it describes the shares as "highly speculative". Trading was suspended before reinstatement on 14 August 2026.

A general meeting notice followed on 31 August, and the FY26 annual report on 4 September.