Why QPM Energy has assumed operating control of the Moranbah Project?

QPM Energy, along with its operating partner GR Production Services, has successfully taken over operating control of the Moranbah Project. This move positions QPM Energy to implement initiatives that will boost production, drive earnings growth, and provide confidence to financiers regarding long-term gas supply for the TECH Project.

What does this mean for QPM Energy?

With the assumption of operating control, QPM Energy is now in a favorable position to implement strategies aimed at increasing production and driving earnings growth. This development will also provide confidence to financiers about the availability of gas supply for the TECH Project. The Moranbah Project already benefits from mature producing wells and established infrastructure, with over $1 billion historically invested in its development.

How was the transition of operatorship carried out?

The transfer of operatorship from the previous operator to QPM Energy was conducted smoothly and safely, without any interruptions to well field operations and gas deliveries to customers. The company has assembled a top-notch operating team, comprised of experienced employees from the Moranbah Project.

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What are the plans for production growth?

QPM has outlined a plan to facilitate significant growth in EBITDA (earnings before interest, taxes, depreciation, and amortization) for the Moranbah Project over the next 12 months. The plan includes:

Initiating a well work-over program to increase gas production, with an initial 9 well campaign set to begin around October 2023.

Installing tie-in points on the adjacent Anglo mine site to capture gas that is currently being drained and flared. Three tie-in points are anticipated to be completed by September 2023, with three more completed by December 2023.

Commencing a new well drilling program funded under the $80 million Dyno Nobel Development Funding Facility. Drilling is targeted to start in early 2024, with the first gas expected by mid-2024.
Other optimization activities for infrastructure.

What are the comments from QPME?

David Wrench, CEO of QPME, expressed his delight at the successful completion of the operatorship transfer. He emphasized the team's motivation and experience and stated that they have a clear vision for significantly growing the business into 2024.

In conclusion, QPM Energy has assumed operating control of the Moranbah Project, setting the stage for increased production and earnings growth. The company has devised a plan to achieve these goals, and the transition was carried out smoothly. QPME's CEO is optimistic about the future prospects of the business.

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