Galilee Energy agrees sale of Glenaras Project for $1.3M
- Galilee Energy entered a binding agreement to sell its wholly owned subsidiary holding the Glenaras Gas Project to Novus Energy Production Company.
- Following the announcement, trading in Galilee Energy shares was temporarily suspended pending further updates.
- The transaction aims to eliminate ongoing project capital demands and allow the company to concentrate on US Gulf Coast opportunities.
Galilee Energy (ASX:GLL) has agreed to sell its wholly owned subsidiary Galilee Resources to Novus Energy Production for an initial cash-backed reimbursement of $1.3 million.
The divestment scales back the company's footprint in Queensland's Galilee Basin after years of managing complex technical and capital hurdles at the asset.
"The development pathway for Glenaras requires a dedicated focus that is no longer aligned with our broader corporate strategy," stated Galilee Energy Managing Director Joseph Graham.
Under the terms of the agreement, the company may also receive $500,000 in deferred cash consideration if a specific project financing milestone is met.
The arrangement transfers future funding requirements, rehabilitation obligations, and project liabilities to the buyer while keeping a 2% net overriding royalty for Galilee Energy.
Following the announcement, the Galilee Energy share price was unchanged at $0.0060.
The company intends to redirect its attention towards international assets, specifically targeting near-term production and cash flow potential in Louisiana, USA.
