• Option to acquire the Zydeco Gas Project in Louisiana, USA - a drill ready, discovered low risk field
• Completed a $6.5m capital raising to fast-track development work in a robust oil & gas jurisdiction
• Louisiana has a highly supportive regulatory framework for the gas industry

Galilee Energy Limited (ASX: GLL) has entered into an option agreement to acquire 100% of the interests in Minerals U Pty Ltd (MUPL), which holds rights to the Zydeco Gas and Condensate Project located in Louisiana, USA. The Proposed Acquisition is subject to shareholder approval. Galilee has also successfully received binding commitments for a A$6.5 million placement of new fully paid ordinary shares to institutional, sophisticated and professional investors. The placement will be used to explore the new assets after exercise of the option, and to maintain existing assets and fund the company's working capital. The Zydeco Project is located in the highly prospective Gulf Coast Basin and contains a gas/condensate reservoir initially discovered in the 1950s but never produced. The project has multiple play-levels proven productive throughout the basin, particularly within the Cenozoic succession. Galilee plans to drill the Zydeco-1 well to test the Upper Tweedle and Lower Tweedle formations, which have shown productivity in nearby offset fields. Louisiana has a highly supportive regulatory framework for the gas industry, attracting significant investment from major players like Woodside Energy.

Galilee believes the Zydeco Gas Project has the potential to create a very strong business base and cashflow to enable the operation to grow organically into a mid-tier US producer, which in turn can generate significant shareholder value.