• Placement to raise A$3.5 million to fund Zydeco-1 sidetrack
• Targeting three gas-condensate objectives: Tweedel, Homeseeker B, and Stafford
• Directors to subscribe for $135,000, subject to shareholder approval
• Proceeds will also fund the proposed sale of Glenaras, focusing resources on US Gulf Coast

Galilee Energy Limited (ASX:GLL) has successfully completed a placement to raise A$3.5 million before costs, aimed at funding the Zydeco-1 sidetrack and testing three gas-condensate targets. The placement received firm commitments from new and existing sophisticated and professional investors, with directors agreeing to subscribe for $135,000, pending shareholder approval. The funds will be used to execute the sidetrack, evaluate the Homeseeker B, Stafford, and primary Upper Tweedel objectives, and cover associated costs. Additionally, the placement proceeds will support the proposed sale of the Glenaras Gas Project, allowing Galilee to focus its resources on its US Gulf Coast growth strategy. The company plans to use the existing well infrastructure for the sidetrack, which is designed to be more capital-efficient and retain the value of prior work completed.

Galilee Energy aims to raise A$3.5 million through the placement, with funds to be used for the Zydeco-1 sidetrack and general working capital.

Galilee Energy is optimistic about the potential of the Zydeco-1 sidetrack and the additional gas-condensate targets, aiming to build a scalable US Gulf Coast oil and gas business.