Galilee Energy Launches 464 Million Free Attaching Options After $6.5M Placement
Galilee Energy has launched an offer of up to 464 million new options to participants in its recent $6.5 million placement, aiming to bolster exploration funding and working capital. The options, exercisable at $0.011 each over three years, come amid significant operational and market risks.
- Offer of 464,285,714 free attaching options to placement participants
- Options exercisable at $0.011, expiring three years from issue
- Placement raised $6.5 million to fund Mineral U leases exploration
- Shareholder approval secured at January 2026 general meeting
- Company highlights multiple exploration, funding, and market risks
Background and Offer Details
Galilee Energy Limited (ASX, GLL) has issued a prospectus dated 13 February 2026, announcing an offer of up to 464,285,714 new options to eligible participants who took part in its recent $6.5 million placement. These options are being offered on a free attaching basis, with one option granted for every two shares subscribed under the placement.
The options carry an exercise price of $0.011 each and will expire three years from their issue date. The offer was approved by shareholders at a general meeting held on 27 January 2026, reflecting investor support for the company’s capital raising strategy.
Strategic Use of Funds
The funds raised from the placement are earmarked primarily for exploration activities on Mineral U Pty Ltd leases, following the company’s acquisition option agreement with Mineral U. Additional funds will support maintenance of existing assets and general working capital requirements. The company aims to advance its Glenaras Gas Project and other exploration initiatives with this capital injection.
Notably, the options themselves will not raise funds upon issue, but if fully exercised, they could inject approximately $5.1 million into the company, providing a potential future funding source.
Capital Structure and Market Listing
Post-offer, the total number of options on issue will increase significantly from 90 million to over 554 million. The company currently has approximately 1.8 billion shares on issue, with no new shares being issued as part of this options offer. The fully diluted share count, assuming all options and performance rights are exercised, would rise to around 2.46 billion shares.
Galilee Energy will apply for official quotation of the new options on the ASX, with trading expected to commence shortly after issue. However, the company cautions that listing does not imply any endorsement of the options’ investment merits.
Risk Factors and Speculative Nature
The company’s prospectus underscores the highly speculative nature of the options offer. Key risks include uncertainties in achieving commercially viable gas flow rates from its Glenaras Gas Project, exploration success, funding availability, and operational challenges inherent in oil and gas exploration.
Additional risks stem from fluctuating gas market prices, regulatory changes, environmental compliance, and broader economic conditions. The company also highlights potential impacts from climate change regulations and community opposition, which could affect project timelines and costs.
Governance and Management
Galilee Energy’s board includes Non-Executive Chairman Eduardo Robaina, Managing Director Joseph Graham, and Non-Executive Director Dale Hanna. Directors have participated in the placement, with shareholder approval for their involvement. The company has disclosed remuneration details and maintains compliance with continuous disclosure obligations, with recent announcements available on its website.
Legal and financial advisers, including Steinepreis Paganin and CPS Capital Pty Ltd as lead manager, support the offer. The company confirms it is not involved in any litigation at this time.
Bottom Line?
As Galilee Energy seeks to convert exploration potential into value, investors will watch closely for drilling results and funding developments that could shape the company’s next phase.
Questions in the middle?
- Will the upcoming drilling program at Glenaras achieve commercially viable gas flow rates?
- How will market conditions and gas prices impact the exercise and value of the new options?
- What are the company’s contingency plans if further funding is required beyond the current placement?
