QPM Energy on track to increase gas production

Queensland-based QPM Energy is reporting encouraging signs from its latest investment into gas production. The drilling program at the Moranbah Gas Project consists of seven new surface-to-inseam well pairs located in the Teviot Brook South region of the lease. The program is on schedule to be completed by November. Main image: Preparing to drill, showing holding area 'pits' which are filled with water then used in the drilling process to help the cutting head process work through the coal seam. QPME has ticked off five of seven lateral wells and all vertical wells as complete. At this stage, production is stemming from two wells while three wells are expected to be commissioned by the end of October. QPME Teviot Brook site. The drill rig is set up and the drilling process started drilling a lateral hole through the coal seam roof. The company told the ASX these early results were encouraging as they indicated that the new wells are accessing undrained areas of the field and are in communication with existing production wells creating a large subsurface drainage network. Related: Offtake and transport deals mark QPME’s second stanza They were excited at the progress achieved to date for the maiden production well drilling campaign, QPM chief executive officer David Wrench said. “The encouraging early gas flows from the first two wells and positive production growth trends we have seen to date are very pleasing,” Mr Wrench said. “Furthermore, we also appreciate the continued support of IPL who have funded this drilling program and agreed to an amendment to our corporate guarantee facility to directly fund the fixed charges under the existing NQGP (North Queensland Gas Pipeline) and TPS (Townsville Power Station) contracts and support QPM’s financial capacity over the term of the agreement.” The drilling program is fully funded under the $80 million development funding facility provided by Dyno Nobel, which has an offtake agreement to feed its explosives manufacturing plant in Moranbah. To facilitate the acquisition of the MGP and associated novation of key contracts relating to the NQGP and TPS, (Dyno Nobel owner) Incitec Pivot provided QPME with a corporate guarantee facility. QPME and IPL have amended this facility to allow QPME the flexibility to fund up to $30 million of fixed charges relating to the existing NQGP and TPS contracts. Any funds provided under this facility will be repaid over an extended period post April 1 2026. QPME recently announced newly agreed commercial terms for the NQGP and TPS which will come into effect around July 1 2025 and will significantly improve MGP’s operating performance.

QPM Energy on track to increase gas production

Industry Queensland

Related News

Case of ‘mind the gap’ in mining safety messages

Sandy Mitchell mining licence application lodged

Codelco eyes Mount Cannindah copper project

Get access to breaking mining news, now.