Galilee Energy (ASX:GLL) will receive a $7.6M research and development (R&D) tax relief from the Australian Tax Office for financial year 2021-2022.
The funds will support the company's balance sheet through to the end of 2023 and will invest in the Glenaras Gas Project, as well as in activities at the Glenaras multi-well pilot and water management project.
Galilee Energy is also exploring a hydrogen demonstration at Glenaras, and says it's well-positioned to supply sustainable energy at a time of tightening east coast gas supply.
The company says following recent heavy rainfall, the remedial operations programme at Glenaras has re-commenced to ensure that the lower Aramac sands are isolated and are not contributing to water production and thereby delaying gas desorption.