QPM raises $19m to fire up gas developments
By Industry Queensland
Queensland Pacific Metals has received binding commitments to raise $19.1 million via a share placement to help propel its Bowen Basin energy initiatives.
QPM said the placement was oversubscribed and strongly supported by new institutional and sophisticated investors recognising the potential of its Moranbah gas project.
“We are excited at the growth opportunities for the Moranbah gas project and the funds received from this placement will allow us to act on those opportunities ahead of us and generate strong value for shareholders,” QPM chief executive officer David Wrench (pictured right) said.
“There are many milestones ahead of us in the coming months and we look forward to sharing our progress.”
As part of the placement, QPM will issue 503,135,078 shares at a price of $0.038 per share.
Related: New wells bring ‘step change’ for QPM energy business
QPM last month announced a significant increase in gas reserves at its Moranbah project, with an independently certified reserve update resulting in 2P reserves increasing 38 per cent from 240PJ to 331PJ.
This means it has more than 200PJ of uncontracted 2P reserves that can be rapidly developed to meet Eastern Australian gas and electricity market demand.
QPM plans to capitalise on its position with near-term activities including:
- The Teviot Brook South new well development program
- Continued well workover program
- Connection of new mine waste gas supply to the Moranbah project gas gathering and processing infrastructure
- Participation in the development of the Northern Carbon Abatement Hub
- Negotiation of new gas transportation and capacity agreements on the North Queensland Gas Pipeline and the Townsville Power Station
- Development of a portfolio of new baseload and peaking power generation located at the company’s Moranbah facilities. This is intended to beneficially use waste coal mine gas and MGP production to supply up to 300MW of power to the NEM
- Development of compressed natural gas and micro-LNG facilities in Moranbah and Townsville to enable distribution of gas to North Queensland energy users.
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