Gallic Energy Ltd.
TSX VENTURE : GLC

Gallic Energy Ltd.

June 28, 2012 08:30 ET

Gallic Energy Ltd. Provides Operational and Corporate Update

CALGARY, ALBERTA--(Marketwire - June 28, 2012) - Gallic Energy Ltd. ("Gallic" or "Company") (TSX VENTURE:GLC) announces that an updated corporate presentation is available as a Quick Link on its website at www.gallicenergy.com.

Gallic is also pleased to announce that the permit to drill or "DOT" for the Hagolle 2 well in the gas-prone Aquitaine Basin of Southern France is progressing through regional and local authorities, with final approval expected in August or September, 2012. This projected 2,500-m well is located on one of six thrusted anticlines seismically mapped in the 781 sq km (193,000 acre) Ledeuix Permit. Hagolle 2 is a 250-m offset well to Hagolle 1 well that was drilled in 1985 by Esso Rep to a total depth of 2,471 m. The Esso well encountered strong mud gas shows while drilling to its primary deeper target, including through an untested 600-m thick Upper Cretaceous limestone.

Mr. William H. Smith, President and CEO of Gallic, commented "We are pleased that the permitting process, technical evaluation and engineering planning for the Hagolle 2 well are all moving forward with a goal of drilling in late 2012 or early 2013. Our recent petrophysical work on the adjacent Hagolle 1 well indicates a thick interval of gas-saturated Upper Cretaceous limestones that are naturally fractured by tectonic folding and thrusting. Such parameters indicate ability for the gas to flow more easily from our target reservoirs. Our drilling and completions program have been revised so that these fractures maintain their maximum possible permeability."

Re-completion of the 200-m thick Upper Cretaceous limestone in the Ossun 2D well in the Ger Permit which was suspended in May, will be deferred until Hagolle 2 has been completed, so that findings from the Hagolle completions can be applied at Ossun.

The Company also announces the resignation of Mr. Richard Grafton as a director of Gallic. Gallic thanks Mr. Grafton for his service and contribution to the Company.

Gallic is an international oil and gas company with assets in France and Australia. Current operations are focused on France and in particular the Aquitaine Basin where the Company holds 100% Working Interest in approximately 320,000 net acres of exploration lands. The Company also holds acreage in the prospective Canning Basin in Australia.

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this news release constitute forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "schedule" and similar expressions. Forward-looking statements are based upon the opinions and expectations of Gallic as at the effective date of such statements and, in certain cases, information received from or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from or disseminated by third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied. These factors include, but are not limited to, such things as general economic conditions in Canada, France and elsewhere; volatility of prices for oil and gas; commodity supply and demand; fluctuations in currency and interest rates; inherent risks associated with the exploration and development of oil and gas properties; ultimate recoverability of reserves; production, timing, results and costs of exploration and development activities; political or civil unrest; availability of financial resources or third-party financing; new laws (domestic or foreign); changes in administrative practices; changes in exploration plans or budgets; and availability of personnel and equipment. Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.

The forward-looking statements of the Company contained in this news release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which Gallic and its affiliates are exposed in the conduct of their business are described in detail in the Company's Annual Information Form and Management Discussion and Analysis for the year ended December 31, 2011, which has been filed on SEDAR www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this news release to reflect subsequent events or circumstances, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Gallic Energy Ltd.
    William H. (Bill) Smith
    President and Chief Executive Officer
    (403) 930-7533

    Gallic Energy Ltd.
    Dean Callaway
    Vice President Finance and Chief Financial Officer
    (403) 930-7534
    www.gallicenergy.com