Gallic Energy Ltd.
TSX VENTURE : GLC

Gallic Energy Ltd.

November 29, 2011 16:00 ET

Gallic Energy Ltd. Provides Operational Update for Ger and Ledeuix Permits, France, and Will Present at Swiss Resources Conference

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2011) - Gallic Energy Ltd. ("Gallic" or "Company") (TSX VENTURE:GLC) announced the operations status of the Company's 100% owned Ger and Ledeuix Permits, both located in the Aquitaine Basin, onshore France.

Mr. William H. Smith, President and CEO of Gallic, said "We are pleased that the first critical steps of well re-entry operations on the Ger Permit have gone so smoothly, and that our ongoing geological and geophysical interpretation of the Ledeuix Permit has resulted in our first exploratory drilling target."

GER PERMIT

Construction has started at both Ossun-2 and Azereix-1 sites and is progressing rapidly. Gallic has salvaged a good portion of the existing infrastructure and therefore construction should be completed on budget within one month. Existing surface casing at both wells were carefully exposed with specialized equipment and found to be in good shape. New wellheads will be installed on the casings this week. The wellhead installations will be closely supervised by a technician from Stream-Flo Industries from Edmonton, Alberta, the equipment supplier.

Gallic, through its wholly owned subsidiary, Exceed Energy (France) SAS, has signed an agreement with Halliburton to supply a snubbing unit (HWO) to re-enter the wells. The rig has been inspected by APAVE, a recognized equipment inspecting organization, and Gallic is awaiting their report. Any modifications to the rig needed to meet the French Mining Code will be made prior to its mobilization to France. The rig mobilization to the Ossun-2 well-site is scheduled for January 4, 2012, pending completion of its current project in Germany.

Gallic has also entered agreements with Weatherford to provide logging services and with MI-Swaco for drilling fluid services.

LEDEUIX PERMIT

Gallic's first well license application for a new drill (DOT) in the Ledeuix Permit is currently being prepared. Surveyors have located the Hagolle-2 drill-site. Upon approval of the license, construction is expected to be completed in Q2, 2012.

Gallic is well financed with $19 million cash on hand to meet its planned activities.

SWISS RESOURCES CONFERENCE

Mr. William H. Smith, President and CEO of Gallic, will be presenting at the Swiss Resources Conference in Zurich, Switzerland on December 1, 2011.

THIRD QUARTER 2011 FINANCIAL STATEMENTS

Gallic has filed its quarterly financial statements on Sedar.

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.
    Mr. William H. (Bill) Smith
    President and Chief Executive Officer
    (403) 930-7533
    (403) 930-7599 (FAX)
    billsmith@gallicenergy.com