Galilee Energy (ASX:GLL) signed a technology license agreement with Queensland oil and gas company Novus Energy to address reservoir challenges at the Glenaras project in Queensland, according to a Monday filing with the Australian bourse.

The companies agreed to work on a technical assessment to improve drainage and production efficiency at the project using Novus' subsurface intellectual property over an initial four-month period, the filing said.

Novus will receive AU$300,000 monthly in license fees under the deal, with the company entitled to all data from the assessment, per the filing.

Galilee Energy shares were up 17% in afternoon trade on Monday.