Magallanes Basin project
In 2014 Galilee completed its evaluation and study of the Coal Seam Gas (CSG) potential in the Southern Magallanes Basin in Chile.
The study focused on 7,200 sq km (1.8 million acres) in the north-west portion of the Magallanes Basin (Puerto Natales – Seno Otway) to evaluate the potential for large-scale coal seam gas (CSG) production. Previous work has indicated the key objective to be the Eocene-Oligocene Loreto Formation, which contains 10-20m of coals at depths ranging from surface to over 1,200m.
Under the terms of the MOU with Empresa Nacional del Petróleo (ENAP) the detailed results of the study remain confidential. However, the company is able to confirm that the study supports the likely presence of a significant gas resource in the coals of the Oligocene age Loreto Formation.
The Magallanes Basin CSG project provides Galilee with ground floor entry into an area with significant potential.
In June 2015, Galilee submitted an application to the Chilean government for an exploration permit application (CEOP) over an area of almost 6,000 sq.km. During the past months, the Company has continued to work through the terms of the CEOP, the agreement that would govern the Company’s exploration and exploitation of hydrocarbon resources in Chile.
Energy exploration and development in Chile, particularly southern Chile, is a national imperative and enjoys strong political support. Chile now imports ~ 80% of its natural gas and has been forced to substitute with more expensive fuel.
Chile consistently rates as a very favourable destination for resource development due to its political stability, good fiscal terms for hydrocarbon production and strong economic climate.