Queensland Pacific Metals upgrades Moranbah 2P gas reserves by 38% to 331PJ
Upgrade is underpinned by strong performance of well workover program
Project now has over 200PJ of uncontracted gas that can help alleviate expected East Coast gas supply shortages
Special Report: Queensland Pacific Metals’ decision to accelerate development of its Moranbah gas project in Queensland has received a boost following a 38% increase in the project’s proved and probable reserves to 331 petajoules.
The Moranbah project in the Bowen Basin captures waste mine gas (methane) from coal mines and was originally acquired to secure gas supplies for the company’s TECH nickel project.
However, the forecast shortfalls in eastern Australia’s gas supply led Queensland Pacific Metals (ASX:QPM) to commit to growing and accelerating development of Moranbah to help meet demand.
It recently spudded the first of seven planned production wells in a highly productive area of the field under the Teviot Brook South program.
The vertical sections of these wells will be completed by the end of June while their corresponding laterals will be drilled from July to September. They will then be brought online progressively during the December quarter.
QPM is also continuing its well workover program to bring wells that were either offline or suspended back into production.
More uncontracted gas
The company has now upgraded 2P reserves from 240PJ to 331PJ, giving it more than 200PJ of uncontracted reserves that can be rapidly developed to meet eastern Australian gas and electricity market demand.
Reserves at Moranbah are contained within granted petroleum leases PLs 191, 196, 223 and 224 and are attributable to the coals in the LH seams from the Rangal Coal Measures and the GU, P, GM and GL seams from the Moranbah Coal Measures.
“We are very pleased with the results of our extensive well workover program which has re-invigorated the field and established a stable production base,” chief executive officer David Wrench said.
“This program has increased production and underpinned the significant reserve upgrade announced today.
“With over 200PJ of uncontracted gas reserves and a myriad of sales opportunities ahead of us, this is an exciting time for shareholders.”
This article was developed in collaboration with Queensland Pacific Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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