UPDATE 1-Galleon Energy to sell unit for C$135 mln

* Says unit holds a portion of its property in Alberta

* To use proceeds to cut bank debt

* Deal expected to close by June end

June 4 (BestGrowthStock) – Galleon Energy Inc (GO.TO: ) said it
agreed to sell its unit that holds a portion of its Puskwa
property in Alberta to a public company for about C$135 million
in cash, and would use the net proceeds to reduce its bank
debt.

Galleon Energy did not name the public company that is
buying its unit.

In March, Galleon Energy said it was reviewing strategic
alternatives, including the sale of the company, as it
continued to suffer from weak natural gas prices.
[ID:nSGE62A0EY]

The company said the properties being sold currently
produce 1.4 million cubic feet and 1,370 barrels of oil per day
and natural gas liquids of 1,600 barrels of oil equivalent per
day (boe/d).

After the deal closes, the company expects to have
production of about 14,500 boe/d and net debt of about C$120
million.

The deal is expected to close by June end.

Shares of the Calgary, Alberta-based company closed at
C$5.75 Thursday on the Toronto Stock Exchange.

Investing Basics

(Reporting by Aftab Ahmed in Bangalore; Editing by Anne
Pallivathuckal)
([email protected]; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5800; Reuters Messaging:
[email protected]))

UPDATE 1-Galleon Energy to sell unit for C$135 mln