Galloway Energy Inc was founded in December, 2006. The company is duly incorporated in the State of Nevada.
The Company is an exploration stage company engaged in the acquisition, exploration and when justified, development, of natural gas projects. The Company is currently identifying potential target acquisitions and hopes to announce the commencement of negotiations with a vendor shortly.
The projects are situated in the Central Valley of California, in a currently prolific gas-producing location. Galloway has acquired a 10% working interest in the two gas plays from Swiss corporation Dominus Energy AG. The projects' potential meets Galloway's corporate mandate of being high-value and reasonable risk that will, if commercially viable, enable Galloway to become a "near-term" producer with sustainable cash flow. The Company has positioned itself through these acquisitions into becoming a producer of natural gas late in the 2009 calendar year.
The two projects have the combined potential to contain over 50 BCF gas and thus, Galloway's 10% working interest in the projects would net 5 BCF of gas to the Company. Galloway has executed an agreement to acquire these two projects by paying 10% of the acquisition and developme nt costs. The two plays have completed extensive engineering including 2D and 3D seismic across multiple target objectives including several rock formations showing as prospective for gas and which are undergoing final selection as well locations for a 2009 drilling program. The targeted locations are very close to existing production that has produced 100's of BCF gas and are also in close proximity to pipelines and other key infrastructure.
Across the Central Valley, local gas production accounts for only 15% of the State's requirements and gas consumption in the Sacramento area is primarily used in electricity generation. Galloway believes that this particular market will remain vibrant with strong gas pricing especially in light of the new Federal Administration's focus on "green-energy" solutions. Gas pricing in California remains some of the highest in the Country based on the state's insatiable regional demand for the commodity. California continues to offer a vast potential of unearthing additional discoveries including entirely new basins in this increasingly strategic aspect of the domestic energy market.
As previously announced, field activities are planned to begin shortly with preparations underway near Sacramento for a seismic shoot. Additionally, reprocessing of the existing seismic data will further define the closure of natural gas traps. Fully defining the gas trap closures is a prudent and expeditious means of heightening the overall probability of success and must be completed before drill site preparations are begun. Management expects to receive an A.F.E. (Authority for Expenditure) from the operator detailing going forward costs shortly.
Galloway believes there is a high probability of success for the completion of commercially viable gas wells on the target lands. Analog production from nearby wells in the area is currently in the 1,000 to 2,000 Mcf per day range and all preliminary indicators suggest that a similar outcome is a reasonable expectation at this time.
Why Natural Gas?
In 2006, U.S. natural gas consumption reached 21.6 trillion cubic feet (Tcf), down slightly from 2005. The historical peak in U.S. natural gas consumption occurred in 2000 when 23.3 Tcf were consumed.
§ The industrial sector consumed the greatest portion with 6.5 Tcf consumed in 2006.
§ The electric power sector used 6.2 Tcf in 2006.
In 2006 residential natural gas consumption was 4.4 Tcf.
2006 commercial sector natural gas consumption was 2.8 Tcf. What is the world demand and outlook for natural gas?
In 2006, world natural gas consumption was 105.5 Tcf. Russia, which consumed 16.6 Tcf, and the United States, which consumed 21.6 Tcf, accounted for 36 percent of the total.
Worldwide consumption of natural gas is projected to increase by nearly 64 percent between 2004 and 2030. Among the end-use sectors, the industrial sector remains the largest consumer of natural gas worldwide, accounting for 42 percent of the total increase in demand for natural gas between 2004 and 2030. Natural gas also is expected to remain an important energy source in the electric power sector, particularly for new generating capacity. By the year 2030, total world consumption of natural gas is expected to be 163.2 Tcf.
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Nice alert here, ran like a bull into the close, must be expecting big things here. Grabbed a bit of a starter but looking for more next week.
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News on Drilling Galloway Energy Announces Adams Feed #1 Gas Well Drilling Ahead at West Texas Project On Friday May 1, 2009, 4:05 pm EDT RENO, NV--(MARKET WIRE)--May 1, 2009 -- Galloway Energy Inc. (Other OTC:GWGI.PK - News) ("Galloway" or the "Company") today is pleased to announce that the "Adams Feed #1" well, which is the first of the previously announced multi-well development program, has commenced drilling at the West Texas project. The gas well is drilling ahead, and will reach the total depth within 4 days. The Company expects results on gas pay zone intervals and will have a very good idea as to the commercial viability of the well and productive gas flow rates shortly thereafter. Galloway will update results as soon as further news becomes available. The "Adams Feed #1" well is located adjacent to the town of Ozona in Crockett County, Texas. As previously announced, Galloway has secured a first right of refusal to participate in the gas project located on 12,900 acres in the Barnett Shale area of West Texas. The area is a well documented and prolific region benefiting from the presence of established companies such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration. The Barnett Shale is one of the largest sources of Natural Gas in the USA with proven reserves of 2.5 Trillion cubic feet (Tcf) which many companies believe is far short of a reserve potential that may prove to be significantly closer to 30Tcf or more. The property in question has over 115 working wells currently in production, as a result of which Galloway's participation will result in immediate cash flow for the Company.
Company President and CEO Shane Lowry comments, "The news from West Texas is very promising and we look forward to announcing what we believe will be positive results in short order. Galloway is entering a growth phase and we look forward to turning our strategic aims into practical reality as quickly as possible."
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Wow this is huge new's on this low floater. This is right at bottom as well. Looking like a fun ride...
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Mr. Shane Lowry Director, President & Secretary
Mr. Lowry brings fifteen years experience in the public markets encompassing both financing and corporate governance roles. He has previously served as an officer and director of Canadian and US companies operating in the Oil and Gas and Mineral Resource sectors. His broad and strategic network provides him with the ability to readily facilitate many aspects of the junior mining and investment field. Mr. Lowry has previously managed two Oil and Gas companies from start-up through the exploration and development phases and on into production. His proven ability to raise capital as well as imparting stable management expertise delivers an important strategic asset and decisive element of leadership to Galloway Energy.
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Galloway Energy Discusses Strategic Energy Opportunities
RENO, NV -- Galloway Energy Inc. (PINKSHEETS: GWGI) ("Galloway" or the "Company") is pleased to announce key elements of its strategic plans aimed at developing sustainable growth during fiscal 2009.
In a recent study from Cambridge Energy Research Associates (CERA), the authors conclude that the equivalent of about 7.6 million barrels per day (mbd) out of a total potential future net growth of 14.5 mbd from 2009 to 2014 is "at risk." They base this assertion due to the collapse in oil prices potentially cutting the growth of future oil supply in half from what would have been anticipated during the high price period. Slower growth in oil production capacity could lead to the next period of rising oil prices, but much depends on the recovery of world oil demand.
For the large players this economic condition may well lead to a period of mergers and acquisitions and a reduction in overall activity. This leaves the junior E&P companies with a significant opportunity -- it's time to acquire a mixed portfolio of undervalued assets and to quickly identify, target and develop plans for future production which will be able to effectively exploit the increased demand that many large players may be unable to accommodate should the demand increase quickly due to a resurging economy.
Some fundamentals have been adjusted, but still hold true overall. The planet's population is expected to grow by 50 percent to nine billion by sometime in the middle of the century. They will require housing and place new demands on energy consumption. The number of cars and trucks is projected to nearly double in 30 years to over two billion vehicles as developing nations rapidly modernize. And twice as many passenger jetliners, over 36,000, could be in the skies within the next 20 years.
These factors demand a lot more oil and natural gas with some predictions showing global oil consumption increasing as much as 35 percent by the year 2030. Overall, producers will somehow have to find and pump the equivalent of an additional 11 billion barrels of oil every year. And this demand is growing even now.
With this strategic setting as a backdrop, Galloway proposes to move ahead with plans to: a. participate in suitably opportunistic joint venture programs across the energy sector, b. identify and acquire exploitable assets within the oil & gas sector in order to develop a properly diversified portfolio, and c. work with other key industry players to identify trend opportunities and further develop our vision to transform our innate small-scale flexibility as a junior entity into tangible results for our stakeholders and investors.
Company President Shane Lowry states, "In today's market, investment decisions are increasingly based on expectations about future value. Of course price expectations have to be weighed against upstream development costs. However, we believe that even as prices may remain low for a period of time they are still highly volatile. The resultant cutbacks in production due to low pricing and uncertainty could certainly cause an extraordinary opportunity in the foreseeable future as the economy recovers. The indicators are abundant and a small company such as ours is very strategically positioned to profit under these circumstances."
Galloway currently holds a 10% working interest in two natural gas plays situated in a prolific gas-producing area of California's Central Valley. The projects clearly meet the Company's strategy of high-value and reasonable risk offering a combined potential of over 50 BCF gas with a net of 5 BCF to Galloway. Should the efforts in California prove commercially viable, this would enable the Company to become a "near-term" producer of natural gas late in the 2009 calendar year.
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News!! Galloway Energy Adams Feed #1 Gas Well Drilling on Schedule On Monday May 4, 2009, 4:15 pm EDT RENO, NV--(MARKET WIRE)--May 4, 2009 -- Galloway Energy Inc. (Other OTC:GWGI.PK - News) ("Galloway" or the "Company") wishes to advise that the "Adams Feed #1" well at the West Texas Project is proceeding to drill ahead on schedule.
The operator of the project has confirmed that the well is on target to reach T.D. (Total Depth) and shortly thereafter the requisite testing of any productive gas bearing zones will immediately commence. Galloway will know the commercial viability of the well and productive gas flow rates upon the completion of testing. The well is the first of a proposed development program targeting a minimum of 20 gas wells to be drilled across the acreage.
The "Adams Feed #1" well is located adjacent to the town of Ozona in Crockett County, Texas. The Ozona region has over 115 working wells currently in production and the program is deemed to be relatively low risk as the formational sands being tested are well known and historically documented as producers.
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Awesome news!!! This company knows how to keep investors informed. Something tells me this is gonna be a huge play....
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