Queensland Pacific Metals Limited (ASX:QPM), an industry-leading mining and resources company, is pleased to provide an update on its progress with the Moranbah Project, along with production and financial forecasts for the project through to 2024.
Over recent weeks, QPM Energy ("QPME"), a subsidiary of Queensland Pacific Metals, has been diligently coordinating with the vendors of the Moranbah Project to finalize the ownership transition. Based on these efforts, it is projected that the completion of this acquisition will occur towards the end of July 2023.
The transaction includes a significant boon for QPME, as it stands to receive a net cash inflow of $30 million upon completion of the acquisition. This capital will serve to bolster the company's growth and operational strategies moving forward.
Upon extensive review of the project's historical operations, field development plans, and newly developed gas supply forecasts, QPME anticipates that the Moranbah Project will yield positive EBITDA through 2024. The detailed production, operating, and electricity price assumptions supporting this forecast can be found in the appended document.
In addition to this operational update, QPME is thrilled to announce the appointment of Mr. Ben Visser as the new General Manager of Development and Operations. Mr. Visser brings a wealth of experience in the oil, gas, mining, and petrochemical industries to his new role. His proven track record of managing large coal seam gas and conventional production operations will be instrumental in driving the Moranbah Project's success.
A significant part of our operational strategy involves the partnering with Upstream Production Solutions ("UPS"), a seasoned gas field operator. UPS is contracted to operate the Moranbah Project and is rapidly approaching operational readiness, ensuring a seamless transition of the experienced Moranbah Project team.
Upon financial closure, QPME will assume full ownership of the Moranbah Project assets and the financial responsibility for operating and capital costs, while also receiving all project revenues. Arrow Energy will continue to provide operational support for a brief period to ensure a smooth transfer of operatorship to UPS.
The upcoming acquisition of the Moranbah Project represents an exciting milestone for QPME and its dedicated team. The company looks forward to sharing further updates as this project continues to develop.
About us:
Queensland Pacific Metals Limited (ASX:QPM) is a dynamic mining and resources company focused on the exploration and development of resource projects in Queensland, Australia. Its mission is to harness the rich resources of the region in a sustainable and responsible manner.
Contact details:
Jane Morgan