QPM muscles into gas with Moranbah completion

Queensland Pacific Metals has become one of the largest domestic gas producers listed on the ASX after securing the Moranbah project. The Townsville battery metals plant proponent announced today that its subsidiary QPM Energy had reached financial completion for the acquisition. Arrow Energy is due to hand control of the operations to QPME’s contract operator GR Production Services (formerly Upstream Production Services) next Wednesday. Related: QPM Raises Funds For Moranbah Gas Boost, TECH Work “Having been involved with the original development of this project almost two decades ago, I am excited to now have the opportunity to re-invigorate the asset," QPME chief executive officer David Wrench said. "We have been working hard during the period leading up to today’s completion to identify initiatives designed to improve the performance of the asset. "Together with GRPS and other stakeholders, we are now ready to implement them as quickly as possible." Sixth largest domestic gas producer on the ASX Settlement proceeds of $30 million have been received from the vendors. And an $80 million Dyno Nobel development funding facility is available to fund new production wells and lift gas production.. QPM said the acquisition from the Arrow Energy Group and AGL Energy transformed the company into the sixth largest domestic gas producer listed on the ASX. It also provides a significant revenue stream, with a forecast pathway to positive EBITDA within the next 12 months. In addition, the Moranbah project provides a pathway for QPM to secure reliable energy for the TECH project in Townsville. It supports its goal to become a large net-negative carbon producer, as the project processes waste mine gas (currently flared or vented) for industry use. Key assets and contractual rights include: 240PJ 2P reserves and 269PJ 2C resources, independently certified; Mature and current gas production rate of 10PJ per annum; About 100 producing wells and associated gas gathering infrastructure; Existing processing and compression infrastructure capacity of 23.4PJ per annum, which has significant excess capacity to grow the business; The right to transport gas via the North Queensland Gas Pipeline, which has capacity of 35PJ per annum; and The right to dispatch 100 per cent of the electricity generated by the Townsville Power Station and the associated revenue. Related: QPM Power Play Continues With Ratch MOU “We applaud the work over more than one year that has been undertaken by the QPM Energy team to complete this acquisition," QPM managing director and chief executive officer Dr Stephen Grocott said. "In doing so, this significantly de-risks our gas supply requirements for the TECH Project and provides a pathway to create a significant positive cash flow business."

QPM muscles into gas with Moranbah completion

Industry Queensland

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