progress report

Galilee Project Update

Document date: Fri 27 Jun 2003 Published: Fri 27 Jun 2003 14:38:38
Document No: 153508 Document part: A
Market Flag: N
Classification: Progress Report
EASTERN CORPORATION LIMITED 2003-06-27 ASX-SIGNAL-G

HOMEX - Brisbane

+++++++++++++++++++++++++
An increase in gas casing pressure in well number 4 has been
observed. This occurrence remains consistent with the expected
performance of Galilee Energy Ltd's management team.

Steps will now be taken to steadily reduce the water level in well
number 4 and factors that could impact on this process include pump
performance and capacity.

Galilee management wishes to emphasise that at this stage while there
are some promising initial signs, it is much too early to reliably
predict that a sustainable gas flow (in any significant quantities)
will occur. This can only be identified more specifically over the
next few weeks.

D K Barwick
CHAIRMAN