Galilee Energy Limited (ASX:GLL) Reports December Quarter Results
Financial Highlights
Galilee Energy Limited (ASX:GLL) reported significant financial developments for the December quarter, including a research and development tax refund of $1.9 million. This funding has boosted the company’s cash position to $4.38 million, following a recent capital raising effort. The company maintains a disciplined approach to expenditure, with operating costs consistent with prior quarters.
Merger Termination
During the quarter, Galilee Energy and Vintage Energy Ltd jointly agreed to terminate their proposed merger. Extensive discussions concluded that the original terms were not in the best interests of shareholders for either company. Galilee is now exploring alternative strategic options.
Project Updates
The Glenaras Gas Project remains a key focus, with a single well online while the integrated subsurface model is under analysis. This updated model incorporates contemporary pressure data and a 3D seismic survey, which aims to enhance the project’s potential for conducting commercial gas production.
In the Springsure Project, technical evaluations continue on the Wandana Prospect, where promising signs indicate multiple gas pools in stacked reservoirs, making it drill-ready.
Executive Comments
Ray Shorrocks, Executive Chairman, stated, “The receipt of the R&D tax refund underlines our strategic initiatives and provides a solid foundation for our ongoing projects as we evaluate our next steps.”
Corporate Developments
Galilee Energy continues to maintain a strong financial position with no debt. The company’s exploration activities during the quarter included an expenditure of $0.34 million focused primarily on Glenaras operations. The resignation of the Chief Financial Officer has also been noted during this period.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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