Galloway Energy says that as part of the recently announced participation agreement regarding a gas producing project in West Texas, the operator has updated Galloway of their mobilization of equipment for the commencement of drilling within the participatory lands.

The new well is located adjacent to the town of Ozona in Crockett County, Texas. The well has been titled as the "Adams Feed" and is scheduled for immediate drilling with preliminary results anticipated within one week from commencement. The operator has advised that drill equipment is currently on its way to the prospect and drilling will begin shortly.

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 benefitting 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 said, "We are very pleased by the news that the operators of this project believe firmly in growth. Bringing an additional well into production certainly enhances and strengthens our rationale for participation in this growing project. However, we are still looking at further strategic acquisitions with an eye to increased expansion and portfolio diversification as we feel this is the best way to provide tangible value to our stakeholders and investors within realistic timelines."

Tags: Galloway Energy Inc.