Queensland Pacific Metals Ltd (ASX:QPM) has welcomed the official completion of the Moranbah Project acquisition by subsidiary QPM Energy and the start of gas operations following the final ownership transfer.
The subsidiary believes it is well positioned to pursue operating initiatives involving increased production and drive earnings growth with a first-class operating team underpinned by a core group of experienced Moranbah Project employees.
QPM says the operation will provide financiers with confidence over the long-term gas supply for the company’s flagship TECH project at Townsville, de-risking the project in the process.
“Highly motivated, experienced team”
“We are delighted that following completion of the Moranbah Project acquisition last Friday, we have now successfully completed transfer of operatorship,” QPM Energy CEO David Wrench said.
“We have a highly motivated, experienced team in control of the project who have a clear vision of what needs to be done to significantly grow the business into 2024.”
QPM intends to action the following plan to increase earnings before interest, taxes, depreciation and amortisation (EBITDA) over the next 12 months:
- Existing well workover program to increase gas production – Initial 9-well campaign planned, due to start around October 2023;
- Installation of tie-in points on adjacent Anglo mine site to capture gas currently being drained and flared – three anticipated to be completed by September 2023 and three more completed by December 2023;
- New well drilling program funded under the $80 million Dyno Nobel Development Funding Facility – commencement of drilling targeted for early 2024 with first gas anticipated mid-2024; and
- Other infrastructure optimisation activities.