Galilee Raises $6.5M, Acquires Zydeco Gas Project, Targets Production in Six Months

A Strategic Pivot to the US Gulf Coast

Galilee Energy Limited has announced a transformative acquisition of the Zydeco Gas Project located in the prolific Gulf Coast Basin of Louisiana, USA. This move signals a clear strategic pivot from its Australian roots towards becoming a mid-tier gas producer in the US market. The Zydeco project, covering over 325 acres in Acadia Parish, is notable for its proven gas and condensate reserves, supported by extensive 3D seismic data and existing infrastructure.

The acquisition, approved by shareholders in late January 2026, grants Galilee full rights to Minerals U Pty Ltd’s Zydeco assets, enabling the company to immediately commence planning for drilling operations. The project’s attributes, including a short 1.6km gas spur line to the Texas Gas Pipeline and simple condensate handling facilities, underpin its low-risk, low-cost development profile. Galilee targets production within six months of spudding, a timeline that, if met, could rapidly transform the company’s operational footprint.

Capital Raise and Board Renewal Fuel Ambitions

To support this ambitious development, Galilee successfully raised $6.5 million through a placement of new shares and options to institutional and sophisticated investors. The capital raise was structured in two tranches, with the first tranche raising $1.225 million already completed and the second tranche expected to close in early February 2026. This injection of funds is critical for securing drilling rigs, materials, and regulatory approvals necessary to advance Zydeco’s development.

Complementing the operational shift, Galilee has refreshed its leadership team with the appointment of Joseph Graham as Managing Director, Eduardo Robaina as Non-Executive Chairman, and Dale Hanna as Non-Executive Director. This new board brings fresh perspectives and relevant experience aimed at steering the company through its US expansion and unlocking value from its existing Australian assets.

Australian Assets and Operational Update

Meanwhile, Galilee’s Australian operations remain in a holding pattern. The Glenaras Gas Project wells are currently offline, with activity limited to reservoir pressure monitoring as the company continues to deepen its understanding of the resource. The Springsure Project in Queensland’s Bowen Basin was relinquished during the quarter, reflecting a strategic focus on higher-potential assets.

Galilee’s cash position stood at $2.93 million at the end of December 2025, bolstered by the initial tranche of the capital raise. The company has also relocated its registered office to Western Australia, aligning its corporate base with the new board’s location and strategic direction.

Looking Ahead

With the Zydeco acquisition and capital raise behind it, Galilee Energy is poised to embark on a new chapter focused on rapid development and production growth in the US. The coming months will be critical as the company navigates regulatory approvals, finalises drilling plans, and executes on its low-risk development strategy. Investors will be watching closely to see if Galilee can deliver on its promise of swift production ramp-up and establish itself as a credible US gas producer.