Gallic Energy Ltd.
TSX VENTURE : GLC

Gallic Energy Ltd.

November 02, 2011 10:25 ET

Gallic Energy Ltd. Releases Resource Estimates for GER Permit, France, Names New CFO and Will Present at 2011 Oil & Gas Finance Forum

CALGARY, ALBERTA--(Marketwire - Nov. 2, 2011) - Gallic Energy Ltd. ("Gallic" or "Company") (TSX VENTURE:GLC) announced that an independent resource evaluation report (the "Report") has been completed by Calgary-based GLJ Petroleum Consultants Ltd. ("GLJ") on the undiscovered petroleum initially-in-place ("UPIIP"), effective September 30, 2011, of the Company's 100% owned Ger Permit, in the Aquitaine Basin, onshore France.

Mr. William H. Smith, President and CEO of Gallic, said "We are pleased to have this Report which quantifies the significant size of the targets that our two-well re-entry program will be evaluating. Gallic's testing program is designed to provide proof of concept of these formations as commercial reservoirs, to measure production rates and to further quantify the hydrocarbons in place."

GLJ's Unrisked UPIIP estimates of gas can be divided into three geologic play concepts to be tested by the 2 wells. All figures are given in BCF:


Play

Well
Formation Low* Estimate (P90 ) Best* Estimate (P50 ) Mean* Estimate High* Estimate (P10 )
Mountain Front Fault Trap Ossun 2 Eocene 6 15 22 44
DanoPaleocene 1 3 4 8
Up CretFlysch 62 158 222 453
Strat Trap Azereix 1 Eocene 7 45 82 195
Unconformity Trap Aptian 56 162 270 598
Barremian 31 128 187 419

In addition GLJ has estimated the Unrisked UPIIP of condensate and oil in the Aptian Formation for the Unconformity Trap in Thousands of Barrels:


Play

Well
Formation Low* Estimate (P90 ) Best* Estimate (P50 ) Mean* Estimate High* Estimate (P10 )
Unconformity Trap Azereix 1 Aptian 650 1,608 2,207 4,430

Estimates of UPIIP were generally prepared using land and technical information including well information, engineering, geological and geophysical data available from Gallic up to September 30, 2011. There is no certainty that any portion of the resources will be discovered. A recovery project cannot be defined for this volume of undiscovered petroleum initially-in-place at this time. There is no certainty that it will be commercially viable to produce any portion of the resources.

The GLJ resource evaluation was prepared in accordance with the procedures and standards contained in the Canadian Oil and Gas Evaluation Handbook. The UPIIP definitions used in preparing this Report are those contained the COGE Handbook and the Canadian Securities Administrators National Instrument 51-101 (NI 51-101).

Gallic is well financed with $20 million cash on hand to meet its planned activities. Surface land clearing has been completed at Azereix-1, and surface construction will commence at both locations next week. Halliburton is providing Project Management services through the planning, construction, re-entry and testing phases of this program.

Gallic is pleased to announce that Dean Callaway has been appointed Vice-President, Finance and Chief Financial Officer, effective November 1, 2011. Mr. Callaway has over 20 years of experience in the energy industry in North America and internationally. Prior to Gallic, Mr. Callaway was CFO of TG World Energy, a former TSXV oil and gas company with international operations in Alaska, the Philippines and Niger, Africa. Prior to TG, Mr. Callaway held senior financial positions with junior oil and gas companies involved in Thailand, Tunisia and the North Sea. He has led the mergers and acquisition group and performed international corporate development and finance at major Canadian pipeline companies. Mr. Callaway is a Certified General Accountant in addition to holding a MBA and B-Comm. After serving as the company's Chief Financial Officer since March 2009, Mr. David Little will resign to pursue other business opportunities. We thank Mr. Little for his contribution to the Company during this exciting period of our growth.

Mr. William H. Smith, President and CEO of Gallic, will be presenting at 10:20 – 10:40 am, Tuesday, November 8, 2011 at the 2011 Oil & Gas Finance Forum in New York City.

*Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.

*Best Estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.

*High Estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.

*Mean Estimate is the arithmetic average from the probabilistic assessment.

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