Galilee Energy engages Novus Energy Trading to help advance complex Glenaras gas project

Galilee Energy (ASX: GLL) has engaged private oil and gas firm Novus Energy Trading to help explore solutions for complex reservoir challenges at its Glenaras gas project in Queensland’s Galilee Basin.

Galilee expects the technology licence agreement between the two companies will help identify the best path to commercialising its assets by applying the latest solutions to address challenges such as water influx and complex reservoir dynamics.

Novus – which has a strong track record in subsurface engineering, permeability modification and lateral well developments across its own oil and gas permits – will offer cutting-edge expertise to assist Galilee in refining its approach at Glenaras and its other projects.

Licence fees

Galilee will pay Novus $300,000 per month in licence fees and five Novus staff will join the Galilee team for the duration of the agreement.

After that, Galilee will be entitled to all the new findings but won’t acquire any interest in Novus’ proprietary technologies.

The insights could have broader implications for the coal seam gas industry by demonstrating how advanced subsurface technologies, including permeability control, can improve resource development.

Advancing Glenaras

Galilee executive chair Ray Shorrocks said the technology agreement would help the company advance the Glenaras project.

“As we continue to navigate the complexities of Glenaras, we have recognised that traditional methods alone may not deliver the breakthrough we need,” he said.

“Partnering with Novus provides an opportunity to bring a new lens to our reservoir challenges, leveraging innovation to refine our approach to our existing assets and identify new opportunities to maximise value for our shareholders.”

Capital raising

Galilee has received firm commitments to raise $1 million for general working capital purposes through the issue of 166.66 million fully paid ordinary shares priced at $0.006 each.

The placement includes a further 33.33 million new shares to Mr Shorrocks and fellow Galilee director Greg Columbus.

Galilee has appointed Alpine Capital lead manager to the raising and will pay them a cash fee equating to 6% of gross proceeds.