Galilee Energy Limited is pleased to announce AGL Energy Limited has agreed to transfer its 50% interest in ATP 529P to Galilee. The transaction will be at no upfront cost to Galilee and is subject to the finalisation of a formal sale and purchase agreement, audits into the asset and Queensland government approval. As part of the transaction AGL will also contribute $590,000 to Galilee to support future operations at Glenaras.

Subject to any unforeseen issues and timing around regulatory approvals, completion of the transaction is expected in late July or early August 2015 with an effective date of 1 June 2015. Galilee will become Operator of the permit from the effective date (subject to completion of audits on different elements of the asset).

In commenting on the transaction, Managing Director Peter Lansom said, 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'

Tags: AGL Energy Limited, Galilee Energy Limited