Why QPM Energy's Completion of Moranbah Project Acquisition is Significant
Queensland Pacific Metals Limited
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Why QPM Energy's Completion of Moranbah Project Acquisition is Significant

QPM Energy (QPME) has successfully reached financial completion for the acquisition of the Moranbah Project, marking an important milestone for the company. With the completion of the acquisition, QPME now has full ownership and control of the project, bringing various advantages and opportunities.

Settlement and Key Operating Agreements:

QPME has received settlement proceeds of $30. 0 million from the vendors, solidifying the financial completion of the acquisition. Furthermore, all key operating agreements and contracts have been novated to QPME, enabling the smooth transition of various aspects of the project.

Transfer of Petroleum Leases and Assets:

As a result of the acquisition, QPME has gained ownership of the Petroleum Leases (PLs) associated with the Moranbah Project, including the gas reserves and resources. Additionally, the transfer of gas production assets to QPME allows the company to take charge of gas sales revenue from Dyno Nobel and Copper Refineries Limited, as well as electricity sales revenue from the Townsville Power Station (TPS).

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Gas Transport and Electricity Dispatch:

QPME now has the ability to transport and store gas in the North Queensland Gas Pipeline, facilitating efficient distribution and utilization of this valuable resource. Moreover, the company can dispatch electricity produced by TPS directly into the National Electricity Market (NEM), enabling QPME to generate additional revenue from electricity sales.

Development Funding and Operatorship Transition:

To support the growth and expansion of gas production, QPME can access the Dyno Nobel development funding facility, with an initial availability of up to $80 million. This funding will be utilized for the development of new production wells to boost gas production.

Furthermore, operatorship of the Moranbah Project will be transferred from Arrow Energy to QPME's contract operator, GR Production Services (formerly Upstream Production Services). This transition will be effective from Wednesday, August 30, 2023, consolidating QPME's control over the project's operations.

The successful completion of the Moranbah Project acquisition represents a significant step forward for QPM Energy. With full ownership and control of the project, QPME is well-positioned to maximize the potential of the Moranbah Project, harnessing its gas reserves and resources, and driving future growth in the energy sector.

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