Queensland Pacific Metals

Moranbah Acquisition Update

Queensland Pacific Metals Limited (ASX:QPM) is pleased to provide an update on the Moranbah Project acquisition by its wholly owned subsidiary QPM Energy (“QPME”).


Highlights

  • Finalisation of remaining Condition Precedents to enable completion of the Moranbah Project acquisition is imminent.
  • Provides QPME with the confidence to finalise key operating agreements that will facilitate transition to full operatorship of gas production assets and electricity generation.
  • QPME has been notified by the Financial Provisioning Scheme Manager that the company will be compliant with its obligations under the Mineral and Energy Resources (Financial Provisioning) Act 2018.
Moranbah Project Update

Acquisition Update

QPME is close to satisfying the remaining condition precedents to enable completion of the Moranbah Project acquisition. QPME is now in the process of finalising key arrangements that will facilitate transition to full operatorship of the upstream gas production assets and downstream electricity generation.

Upstream Gas Operations

QPME has previously announced that it has appointed Upstream Petroleum Services (“UPS”) as contract operator for the Moranbah gas field. UPS and QPME have formally notified the Queensland Regulator (Resource Safety and Health Queensland) of their intention to become the operator of the Moranbah Project as at 31 August 2023. Financial close of the acquisition is expected before this date and Arrow will remain operator until then.

Gas Nominations and Electricity Generation

The Moranbah Project assets include a Power Purchase Agreement with Townsville Power Station (“TPS”) which gives the right for QPME to generate electricity through the supply of gas to the TPS and sell that electricity into the National Electricity Market (“NEM”). QPME is registering as a generator of electricity in respect of the TPS.

QPM has appointed CQ Energy to provide key operational services to QPM that include the bidding and dispatch of electricity generated by TPS into the NEM. CQ Energy has been operating in the electricity and gas markets since 2008 and acts as a dispatch agent on behalf of clients. It currently manages nearly 2,500MW of generation capacity into the NEM and the WEM in WA. It has a 24/7-day physical trading operations desk that currently utilises seven full time gas and electricity traders to oversee the portfolio management of their clients. CQ Energy is the most experienced trading operational group in Australia outside the major energy market participants.

QPM has also appointed SGM Solutions to run its gas nominations and scheduling services under the various gas agreements that the Moranbah Project has with existing customers (including the TPS). SGM Solutions has a strong track record of delivering commercial operations expertise to its clients and has consistently delivered that since it commenced operation in 2016. It has a team of four full time gas traders providing 24/7 oversight of their client’s gas nomination requirements.

Financial Provisioning Scheme

Assets acquired as part of the Moranbah Project include four Petroleum Leases (“PL”) and two Petroleum Pipeline Licenses (“PPL”).

QPME has provided information to the Queensland Government’s Financial Provisioning Scheme (“FPS”) Manager for its risk assessment of the Environmental Authorities at time of transfer of ownership from the vendors to QPME.

QPME has since been notified by the Scheme Manager that following completion of its review and successful transfer of the Environmental Authorities to QPME, the company will be compliant with its obligations under the Mineral and Energy Resources (Financial Provisioning) Act 2018.

Moranbah Guidance

In light of the imminent finalisation of the Condition Precedents, there is no change to the preliminary production and financial guidance announced previously for the Moranbah Project (see ASX announcement 17 July 2023)


Click here for the full ASX Release

This article includes content from Queensland Pacific Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

QPM:AU
The Conversation (0)
Element 25 Limited

Element 25 Signs US$85M Supply Deal with GM for Manganese Sulphate

Element 25 (ASX:E25) has signed a deal with General Motors (NYSE:GM) to supply the car manufacturer 32,500 tonnes of manganese sulphate annually, according to a news report by Reuters.

Keep reading...Show less
FPX Nickel (TSXV:FPX)

FPX Nickel


Keep reading...Show less
Nickel bars.

Nickel Price Update: Q3 2024 in Review

Nickel saw solid price momentum in the first half of the year, benefiting from investor sentiment and speculation across commodity markets that saw surge in prices for both precious and base metals.

However, price highs were short-lived as nickel supply and demand fundamentals provided pressures that saw steep declines.

Among the influences has been a supply of laterite nickel flooding the market out of Indonesia, which is a contributing factor to mine curtailments in New Caledonia, Australia, and Europe. Meanwhile, high demand for battery production in China has yet to reach levels to make up for the oversupply in the market.

Keep reading...Show less
Blackstone Minerals

Blackstone Completes Institutional Component of Entitlement Offer

Blackstone Minerals Limited (“Blackstone” or the “Company”) is pleased to announce that it has completed the institutional component (“Institutional Entitlement Offer” or “Institutional Offer”) of its partially underwritten accelerated non-renounceable pro rata entitlement offer as announced on 4 November 2024 (“Entitlement Offer” or “Offer”).

Keep reading...Show less
Blackstone Minerals

Launch of $4M Accelerated Partially Underwritten Entitlement Offer

Blackstone Minerals Limited (“Blackstone” or the “Company”) is pleased to announce that it is undertaking a partially underwritten accelerated non-renounceable pro rata entitlement offer of new fully paid ordinary shares in the Company (“Shares”) on the basis of one (1) new Share (“New Shares”) for every four (4) existing Shares held, to raise up to approximately A$4 million (before costs) (“Entitlement Offer” or “Offer”).

Keep reading...Show less
Ramp Metals (TSXV:RAMP)

Ramp Metals


Keep reading...Show less
Blackstone Minerals

Blackstone Minerals Limited (ASX: BSX) – Trading Halt (2+2)

Description

The securities of Blackstone Minerals Limited (‘BSX’) will be placed in trading halt at the request of BSX, pending it releasing an announcement regarding the outcome of the institutional component of the accelerated entitlement offer. Unless ASX decides otherwise, the securities will remain in trading halt until the commencement of normal trading on Wednesday, 6 November 2024.

Keep reading...Show less

Latest Press Releases

Related News

×