ASX/MEDIA ANNOUNCEMENT 22 April 2014 Galilee Energy: investor presentation Galilee Energy Limited (ASX: GLL) ("Galilee" or the "Company") announces today that the Managing Director and Executive Director commenced a series of investor briefings in Sydney and Melbourne. A copy of the presentation is attached. For further information contact: Peter Lansom Managing Director Galilee Energy Limited +61 (0) 7 3216 1155 plansom@galilee-energy.com.au Level 2 / 895 Ann Street / Fortitude Valley Q 4006 PO Box 2145 / Fortitude Valley BC Q 4006 T +61 7 3216 1155 / F +61 7 3216 1199 E admin@galilee-energy.com.au www.galilee-energy.com.au ABN: 11 064 957 419 ASX CODE:GLL Page 1 of 1
22-23 April 2014 Peter Lansom - Managing Director Paul Bilston - Executive Director
Company overview Strong Balance Sheet. Board and Management strongly aligned to shareholder interests having made a significant investment in Galilee shares. Market overview 15 April 2014 ASX code GLL Market capitalisation $18.3m Shares on issue 152.1m Unlisted options 1.6m Closing share price $0.12 Average daily trading volume (3 month) 45.7k Substantial Shareholders * Name No of shares Ecarlate Pty Ltd 18,342,608 12.06 Ekco Investments Pty Ltd 8,881,011 5.84 AMP Life Limited 8,419,967 5.53 Top 20 holders 81,210,768 53.38 % Cash (at 31 Dec 2013) Debt $26.0m Nil Directors & Management 9,468,663 6.22 No of shareholders 1,550 * As at 17 th April 2014 2
Company overview Share Price Performance (last 12 months) Galilee s new board and management $0.17 1.8 is focused on building and expanding $0.16 $0.15 $0.14 $0.13 $0.12 1.6 1.4 1.2 1.0 0.8 Volume (m) its asset mix to create a mid-tier exploration and production company. In an environment of capital starvation $0.11 $0.10 $0.09 $0.08 2/04/2013 2/07/2013 2/10/2013 2/01/2014 2/04/2014 0.6 0.4 0.2 - for junior Oil & Gas companies and asset divestment by the majors, Galilee is uniquely positioned. 3
Experienced oil and gas team Board and Management Dr. David King Non- Executive Chairman PhD, MSc, FAusIMM, FAICD. Peter Lansom Managing Director B.E. Petroleum (Hons) Ray Shorrocks Non- Executive Director Paul Bilston Executive Director B.E. (Mech), PhD 40+ years experience in natural resources. Founder and NED of Sapex Ltd, Gas2Grid and Eastern Star Gas. Previously, MD of North Flinders Mines and CEO of Beach Petroleum and Claremont Petroleum. Currently non-executive chairman of Robust Resources, and NED of Cellmid, Republic Gold and African Petroleum Corporation. 25+ years experience in conventional and unconventional exploration and development, with significant expertise in subsurface engineering, asset valuation, field development planning and commercial and corporate finance. Previous roles included subsurface engineering at Santos, Chief Petroleum Engineer at Origin Energy and Executive Director at Eastern Star Gas. 20+ years experience investment banking industry, including a significant track record of transactions in the metals and mining, industrials and property sectors. Director: Patersons Securities, heads the corporate finance department in Sydney, and is chairman of Republic Gold. 18+ years experience in the Oil and Gas sector in a number of senior technical, commercial and management roles domestically and overseas. Worked in engineering Worley and GHD with senior management roles with AGL Energy, head of CSG for AJ Lucas and recently as managing director of ASX listed Challenger Energy. 4
Corporate direction Galilee has a clear plan to grow shareholder value and the capacity to execute Maximise the value of the current assets demonstrate commercial gas flow and book reserves Three part strategy Develop a sustainable foundation by building a solid production base. Deliver value and upside with our expertise Grow the exploration portfolio by acquiring low cost, early stage positions in underexplored areas 5
Current assets ATP529P Tenement Operator ATP 529P AGL Energy Limited (AGK) Ownership GLL 50% : AGL 50% Area 3,953 km 2 Status Appraisal Resource 1C of 11.8 Bcf (100%) Estimate 2C of 247.8 Bcf (100%) 3C of 1,042.9 Bcf (100%) Mount Isa Moomba MAP CGP Cannington MSP Longreach Ballera ATP 529P Gilmore Barcaldine Townsville SWQP Roma Cheepie Wallumbilla Galilee Basin Coal Mining region massive demand for energy QGP Gladstone RBP Brisbane 6
Current assets ATP529P Prospectivity Coal Seam Gas: Galilee Basin sub-bituminous to bituminous Late Permian Betts Creek coal beds. Eromanga Basin Post- Permian Toolebuc shale gas/ oil. Conventional Oil and Gas accumulations are considered to be high risk. Moving to commercialisation A significant gas flow would lead to a re-rating of the Basin s potential. A commercial rate would lead to reserve booking. LNG sector underwriting strong demand for gas. Major domestic customers becoming increasingly desperate for new gas sources. Local power options at Barcaldine with a growing need for energy in the new Galilee Basin mining precinct near the project area. 7
Glenaras Pilot completion design Current Existing pilots utilised multi-stage fracture stimulations Considered necessary for productivity This resulted in high permeability water zones being connected to the coal. Most production has come from the water zones with little drawdown of the coals Planned Proposing a completion of the coal only Simple design and significant reduction in cost Coal permeability should be sufficient to achieve commercial flow rates. Production will be from the coal beds only allowing pressure drawdown and gas production Plug Coals Water bearing units Coals Water bearing units 8
Building a production base and free cashflow We are building a production base by identifying projects with a preference for: Materiality for the company In or near-term production Liquids or liquids rich gas Deliver sustainable free cashflow within 2 yrs Substantial equity interest and operatorship Projects where the technical expertise of the company will add value. Potentially joint venture on larger assets with investors looking for oil and gas exposure but seeking operating/technical expertise global capital markets are opening for these deals. Areas of interest Onshore Australia North America Asia 9
Expanding our exploration portfolio Building a quality exploration portfolio has the potential to deliver significant value for shareholders but will take time. Quality deals are worth the wait. Add a photo or two Strategy: Identifying underexplored sedimentary basins in stable jurisdictions Leveraging modern exploration and data analysis techniques to frontier opportunities Seeking to obtain interests in the areas by direct application or by farm-in. Areas of Interest South America North Africa Europe 10
Conclusion Strong Balance sheet New proven successful Board and Management Currently, Galilee (GLL) has ~$26.0m* of cash at hand and no debt in an exciting environment for asset acquisitions and M&A. GLL plans to deliver value and upside with its robust balance sheet and management expertise. This has already been demonstrated via the robust technical review of ATP529P and recompletion strategy. GLL s board and senior management are significant investors, strongly aligned to shareholders and the creation of near-term shareholder value. GLL s Board and Management provide a strong depth of experience and skills relevant to the Company s growth strategy. GLL s Board and Management have a strong track record of delivering value creation for shareholders at both the corporate and operational levels in the oil & gas sector. New strategic direction Maximise the value of the existing assets demonstrate commercial gas flow and book reserves in a large, frontier hydrocarbon province. Strategically acquire near term assets with appraisal upside. Use Galilee s strong balance sheet to grow the exploration portfolio by acquiring low cost, early stage positions in underexplored areas. * As at December 31 11
Disclaimer This presentation may contain forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. Investors should undertake their own analysis and obtain independent advice before investing in GLL shares. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. 12