Galilee Energy Ltd. has agreed to sell its wholly owned subsidiary, Galilee Resources, and the underlying Glenaras gas project in Queensland’s Galilee Basin to Novus Energy Production Company Pty Ltd.
Under the agreement, Novus will acquire 100 per cent of Galilee Resources and assume all operational, environmental, and rehabilitation liabilities associated with the Glenaras project, including ATP 2019.
Financial terms of the deal include the reimbursement to Galilee of approximately AU$1.34 million in cash-backed environmental security deposits.
A further AU$500,000 in deferred cash consideration will be payable once Novus achieves an agreed project financing or reserve certification milestone.
The transaction marks a key step in Galilee’s corporate pivot toward building a scalable oil and gas business focused on near-term production and cash flow in the US Gulf Coast region.
Galilee believes separating Glenaras from its US portfolio creates a clearer strategic proposition for both assets. Glenaras can be advanced through a dedicated project-specific strategy, while Galilee can focus its capital and management resources on opportunities within its chosen US Gulf Coast operating region.
Galilee will also retain a 2 per cent net overriding royalty on future production from Glenaras, retaining upside exposure to the asset without ongoing funding commitments. A separate 1 per cent royalty will be assigned to transaction adviser Miro Capital.
“Glenaras is a substantial Australian gas resource which has required significant investment by Galilee over many years,” said Galilee Energy Managing Director Joseph Graham.
“However, its scale and development pathway require a level of dedicated funding and management focus that is no longer aligned with Galilee’s strategic direction.”
“Galilee is now focused on establishing a scalable oil and gas business in the US Gulf Coast, targeting opportunities with the potential for shorter development timeframes, access to existing infrastructure and earlier production and cash flow,” Graham added.
Completion of the sale remains subject to regulatory approvals, third-party consents, and finalisation of the royalty deed, with closing expected shortly after conditions precedent are satisfied.
