Galilee Energy Strikes Deal with AGL to Acquire 100% of ATP 529P

Junior energy firm Galilee Energy Limited announced Thursday that AGL Energy Limited has agreed to transfer its 50 percent interest in ATP 529P, located in Australia, to Galilee.

The transaction, which is subject to the finalization of a formal sale and purchase agreement, audits into the asset and Queensland government approval, will be at no upfront cost to Galilee. As part of the deal AGL will also contribute $590,000 to Galilee to support future operations at ATP 529P’s Glenaras pilot, which includes a test on the project’s R1 coal seam.

Galilee Energy Managing Director Peter Lansom commented in a company statement:

“I am very pleased that we have reached agreement with AGL on this transaction. This allows the planning and execution of the R1 pilot test to progress as soon as practical. If successful, this will unlock a new material source of gas for east coast Australia.”

Completion of the deal, which will result in Galilee holding a 100 percent interest in ATP 529P, is expected in late July or early August, according to the company. Further information on timing of the R1 test is expected in the near future.