Galilee Energy has successfully completed an oversubscribed placement to new and existing investors to raise $11.8 million to fund new wells at its Queensland project.
These funds make up part of an overall equity capital raising of around $15 million.
Funds raised will be applied to the drilling and completion of five new vertical production wells at Glenaras to accelerate pressure drawdown and gas production.
“Funds raised n the placement will be applied to a new 5-well drilling program to accelerate pressure drawdown and initiate gas desorption at Glenaras to achieve commercial gas production in support of a material maiden reserve booking,” the report read.
The Glenaras Project has one of the largest certified un-contracted contingent resource positions on the east coast.
The company’s updated strategy aims to facilitate transformational value uplift and progress Galilee towards becoming a multi-trillion cubic feet (Tcf) gas development company.
Galilee will issue 36,922,568 new fully paid shares at a price of $0/32 per share to raise the $111.8 million.
Galilee said it expects placement shares will be allotted on 3 March.
In addition to the placement shares, the company intends to issue up to $440,000 of new shares to Galilee directors on the same terms as the placement.
Managing director David Casey said the strong demand for the placement is a “positive and encouraging endorsement” of the Glenaras Gas Project.
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