Viking pulls pin on Galilee farmin

UK company Viking International Petroleum has pulled out of its proposed coal bed methane Joint Venture with Eastern Corporation's 51% subsidiary Galilee Energy.

Hayden Lilienthal

In early August Viking had announced plans to inject $18 million into Galilee through a 50% acquisition of the central Queensland Rodney Creek pilot program.

Viking told Galilee that the current project does not fit Viking's investment strategy, based on a technical assessment undertaken by them. They have not however discounted the possibility of considering participation in the project as it progresses.

Eastern's chief executive officer Paul Williams said that Galilee would continue to pursue the development of the project by undertaking a technical review of the current pilot program at Rodney Creek. Discussions are also continuing with other potential joint venture partners.