GAX Galaxy Energy Corp.

* Total Depth Reached DENVER, Feb. 1 /PRNewswire-FirstCall/ -- Galaxy Energy Corporation (AMEX:GAX), through its wholly owned subsidiary Pannonian International Ltd. (Pannonian), announced today that it completed drilling its initial test well, Glantal-1, located in southwest Germany. The Glantal-1 well was drilled as a directional well to a total depth of 1,687 meters. The well is located on the company's 149,000 acre property Neues Bergland Exploration Permit near Kusel, Germany. Pannonian is the operator of a four-company joint venture group with a 24% working interest in the well and will act as the operator for the first three wells in Phase One and Two. Based upon the initial review of open hole logs, several zones of interest exist. The Company indicated that based on initial well results it will undertake a detailed analysis to identify priority zones for further development. Accordingly, well operations have been temporarily suspended, during which time further detailed open hole log analyses will be completed. Marc E. Bruner, CEO and President of Galaxy commented, "We intend to fully review the results of this initial well and test several zones of interest for further evaluation. The European market for natural gas is extremely favorable and the results of this initial well warrant a detailed evaluation for its production potential." About Galaxy Energy Galaxy Energy Corporation is an oil and gas exploration and production company focusing on acquiring and developing coalbed methane and other unconventional natural gas properties in Wyoming, Montana, Colorado and Europe. Forward Looking Statement This press release consists of forward-looking statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and actual results could differ materially from those indicated by such forward looking statements. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise. Please refer to the company's filings with the United States Securities and Exchange Commission for discussions of risks and uncertainties found in Forms 10-KSB (annual report), 10-QSB (quarterly report) and other filings. Additional information may be found at the Galaxy Energy Corporation Web site, http://www.galaxyenergy.com/ or by calling Brad Long, Investor Relations/Galaxy Energy (800) 574-4294, Bevo Beaven or Bill Conboy of CTA Public Relations (303) 665-4200, Tina Cameron of Renmark Financial Communications (514) 939-3989, or Kathleen Heaney of Integrated Corporate Relations (203)-682-8242. CONTACT: Brad Long / Investor Relations Bevo Beaven, Vice President/GM Galaxy Energy Bill Conboy, Vice President (360) 945-0395 CTA Public Relations, Inc. (800) 574-4294 (303) 665-4200 DATASOURCE: Galaxy Energy Corporation CONTACT: Brad Long, Investor Relations of Galaxy Energy Corporation, +1-360-945-0395, or +1-800-574-4294; or Bevo Beaven, Vice President/GM, or Bill Conboy, Vice President, both of CTA Public Relations, Inc., +1-303-665-4200, for Galaxy Energy Corporation Web site: http://www.galaxyenergy.com/

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