Galloway Energy Inc. (fka GWGI)

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Galloway Energy Inc. (GWGI)

Galloway Energy Inc, The Company is an exploration stage company engaged in the exploration of Oil and Gas.
Recent Price Last
0.105
Market Capitalization $5.5M
Est Float 5 M
Outstanding Shares 55M
Exchange OTC.PK

Galloway Energy, Inc.
50 W. Liberty St.
Suite 880
Reno, NV 89501

Phone: [phone]
Fax:
http://www.gallowayenergyinc.com Company Highlights


Natural gas provides almost one-third of the California ’s total energy requirements and will continue to be a major fuel in California 's supply portfolio. California 's supplies of natural gas come from four areas: in-state production, Southwestern United States, Canada and the Rocky Mountain Region.

California spent nearly $19 billion on natural gas in 2006, with 42% for core customers (residential and commercial), 40% by non-core (industrial and electricity production), and 18 percent by non-utility (direct deliveries from interstate pipelines and California production). That's a near-tripling of the costs in ten years.

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Current Projects
Galloway Energy Evaluates 2D and 3D Seismic for Target Identification





Galloway Energy Inc. has further evaluated the previously mentioned 2D and 3D seismic work in order to establish target objectives in relation to the Company's two natural gas exploration and development projects. 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.




Galloway Energy Evaluates 2D and 3D Seismic for Target Identification





Galloway Energy Inc. has further evaluated the previously mentioned 2D and 3D seismic work in order to establish target objectives in relation to the Company's two natural gas exploration and development projects. 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.







Company Overview
Galloway Energy (OTC.PK: GWGI)

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.