Galilee Reports $2.8M Cash, $1.2M Licence Fee, and Ongoing Farm-Out Progress
Galilee Energy reported operational cost reductions and a $2.8 million cash balance following a partial capital raise, while progressing a farm-out process for its Denison Trough permit.
- Operational cost reductions implemented at Glenaras Gas Project
- Cash balance of $2.8 million after partial capital raising
- One-off $1.2 million licence fee paid for reservoir technology
- Ongoing farm-out process for Denison Trough permit ATP2050
- No debt and disciplined expenditure approach maintained
Operational Focus on Glenaras Reservoir
Galilee Energy Limited’s June 2025 quarterly report highlights a continued focus on monitoring reservoir pressures at its Glenaras Gas Project in Queensland’s Galilee Basin. This data collection is critical for refining the company’s integrated subsurface model, which underpins future development plans. Notably, all wells were offline during the quarter, reflecting a strategic pause to optimise reservoir understanding.
Cost Management and Financial Position
In response to market conditions and operational challenges, Galilee implemented further cost reductions at Glenaras to improve capital efficiency. The company’s cash position stood at $2.8 million at quarter-end, bolstered by a partial capital raise that brought in an additional $0.2 million during the period, totaling $0.9 million raised since March 2025. Importantly, Galilee maintains a debt-free balance sheet, providing financial flexibility amid ongoing exploration activities.
One-Off Licence Fee and Technology Investment
The quarter saw a one-off payment of $1.2 million to Novus Energy Trading Company for a licence fee related to technology aimed at addressing key reservoir challenges at Glenaras. This investment underscores Galilee’s commitment to leveraging innovative solutions to enhance project viability and sustainable energy production, including the beneficial use of fresh water produced from coals.
Progress on Denison Trough Farm-Out
Galilee continues to advance a farm-out process for its 100% owned Denison Trough permit ATP2050 in the Bowen Basin. A comprehensive technical review has been completed, and the company remains open to alternative commercial opportunities that could drive growth and value creation. This strategic flexibility is crucial as Galilee positions itself as a future material supplier of natural gas to Australia’s east coast market.
Outlook and Strategic Positioning
With disciplined expenditure and cost rationalisation measures in place, Galilee’s directors express confidence in the company’s ability to continue operations and meet business objectives. The company’s focus on sustainable energy, combined with its substantial uncontracted natural gas resources, positions it well to capitalise on evolving market demands. However, the timing and outcome of the farm-out process will be key to watch in coming quarters.
Bottom Line?
Galilee’s cost discipline and strategic farm-out efforts set the stage for its next growth phase amid a cautious market.
Questions in the middle?
- What are the expected timelines and terms for the Denison Trough farm-out?
- How will the one-off licence fee investment impact future operational costs and project economics?
- What alternative commercial opportunities is Galilee exploring beyond current permits?
