GLR Galileo Resources Plc

RNS No 1952b
GAELIC RESOURCES PLC
10th March 1998

                       GAELIC RESOURCES PLC ("Gaelic")                        

Gaelic, through its wholly owned subsidiary company, European Hydrocarbons
Limited, has a 25% interest in three onshore licences in the Lusitanian Basin
in Portugal; Figueira de Foz, Marinha Grande and Aljubarrota.

The Aljubarrota No 1 well, drilled by Mohave Oil and Gas Corporation
("Mohave"), the operating company, has found indications of hydrocarbons in a
number of dolomitic beds which lie below a thick salt sequence.  Log
interpretation and shows during drilling suggest that the beds are oil and gas
bearing with log-derived porosities in the range 8% to 22% and a net
hydrocarbon bearing interval of 116 metres over a 900 metres section.  The
well was drilled with salt saturated drilling fluid in order to control
washout of the salt sequence resulting in the fluid being significantly
overbalanced to formation pressure.  Five drill-stem tests were conducted.  No
hydrocarbons were produced from these tests and it seems likely that the
porosity and permeability of the dolomitic beds have suffered mud damage. The
well is being temporarily abandoned pending further engineering studies. 
These may lead to additional testing work in due course including hydraulic
fracturing of the hydrocarbon-bearing beds.  Triassic sandstones, which
outcrop on the eastern margin of the Lusitanian Basin and were the main target
in the well, were not present and may have been faulted out at the well
location.  A second well using a more suitable mud programme is planned later
in the year.

Gaelic has recently signed further exploration agreements with Mohave for a
25% interest in two additional licences in Portugal.  The Sao Pedro de Muel
and Sao Mamede licences, which together cover an area of about 572,000 acres,
lie adjacent to the existing licences in the Lusitanian Basin and extend both
onshore and offshore.  Existing seismic surveys in these licences exhibit flat
spots which may be direct hydrocarbon indicators.  A well is planned next year
following additional geological and geophysical work.

For further information please contact:

Colin Phipps         00 44 1684 892 242
Tom Fussell          00 44 118 934 2440
David Quick          00 44 1684 892 550
Simon Rothschild     00 44 171 256 5756


END


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