QPM Strengthens Balance Sheet with New Dyno Nobel Funding Agreements

QPM Energy Limited (ASX: QPM) (“QPM” or the “Company”) is pleased to announce the execution of two new funding agreements with its foundation customer, Dyno Nobel Ltd (“Dyno”), to refinance existing facilities and provide a long-term, stable platform for growth across QPM’s gas supply and energy portfolio.

These agreements further consolidate the Company’s financial position, with funding secured under favourable terms to support the development of the Moranbah Gas Project (MGP), including new well drilling and infrastructure optimisation.

Key Highlights

• New Prepayment Facility of up to $40 million to support gas delivery under the New Gas Sales Agreement (NGSA) from April 2026 to March 2033.
  
  

• New Additional Funding Facility of up to $30 million, with $21 million drawn to repay QPM’s existing Working Capital Facility.
  
  

• Existing $80 million Development Funding Facility (DFF) remains in place and may be expanded to $120 million.
  
  

• QPM has now established a stable, long-term capital structure with deferred repayments until April 2027.
  
  

• From July 2025, QPM will benefit from reduced costs under new contracts with Townsville Power Station and North Queensland Gas Pipeline.
  
  

Funding Structure Summary

1. Prepayment Facility

• Prepayment Amount: Up to $40 million
  
  

• Use of Funds: Gas delivery under NGSA (2026–2033)
  
  

• Initial Drawdown: $6 million plus $21 million (from Additional Facility) to repay existing Working Capital Facility
  
  

• Interest:
  
  

• Until 31 March 2027: BBSY + 2%
  
  

• From 1 April 2027 to 2033: BBSY + 6%
  
  

• Repayment: Equal monthly instalments over 72 months beginning April 2027
  
  

2. Additional Funding Facility

• Facility Limit: $30 million
  
  

• Drawn Amount: $21 million
  
  

• Use of Funds: Repayment of Working Capital Facility
  
  

• Interest:
  
  

• Until 31 March 2027: BBSY + 2%
  
  

• From 1 April 2027 to 2033: BBSY + 6%
  
  

• Repayment:
  
  

• 30% repaid in monthly instalments from April 2027
  
  

• 70% as a bullet repayment in April 2033, or amortised over a 4-year extension period if Dyno extends the NGSA
  
  

The facilities include customary terms, cure periods, and default provisions.

Development and Operational Progress

QPM’s existing $80 million DFF with Dyno, of which $38.3 million has been drawn, continues to fund:

• Drilling of the Teviot Brook South 7 well
  
  

• Workovers of existing wells
  
  

• Optimisation of the MGP gas gathering infrastructure
  
  

QPM is finalising plans for a new production well drilling program targeted to commence later in 2025. Wells under this program are expected to be funded through the DFF, which is repaid not in cash, but via gas delivery under the NGSA.

Comment from CEO, David Wrench

“In just under two years, we have reinvigorated the MGP and developed an exciting integrated energy business. These funding agreements with Dyno Nobel represent another important step in this transformation. From July 2025, the business will transition to a much lower cost structure under the new contracts with Townsville Power Station and North Queensland Gas Pipeline. In combination with the new funding agreements announced today, QPM has established a stable and secure long-term business that is primed for growth.”

QPM Energy Limited (ASX: QPM) is an integrated gas producer and energy business operating in North Queensland. The Company is focused on commercialising existing gas reserves and infrastructure through long-term offtake agreements, while expanding its portfolio of production wells and energy delivery capabilities.

For more information, visit: www.qpmenergy.com.au

David Wrench
Chief Executive Officer
T: +61 7 3517 5900
E: [email protected]