Investors flock to Queensland Pacific Metals, raising $19.1m for Moranbah gas project

Queensland Pacific Metals has raised $19.1m for its Moranbah gas project in QLD
Funds raised through a share placement at 3.8c per share to institutional investors
Capital to be used to drive growth initiatives for Moranbah’s development

Special Report: Queensland Pacific Metals has successfully rattled the tin to raise $19.1m through an oversubscribed share placement to accelerate the development of its Moranbah gas project (MGP) in QLD.

The MGP, through Queensland Pacific Metals’ (ASX:QPM) energy business QPM Energy, was acquired in August last year and is a coal mine waste gas project capable of producing 30 petajoules (PJ) per annum.

Gas is an important part of our energy mix for our transition to renewables and there’s a critical need to increase supply, especially on the east coast.

The Federal Government announced its Future Gas Strategy earlier this month, declaring that gas remain an important source of energy through 2050 and beyond.

It will support renewables, power manufacturing and aid trade partners with their gas needs.

Government policies will also be directed to enable easier gas exploration and development and prioritise energy security.

Share placement details

An oversubscribed placement to raise $19.1m at 3.8c per share was strongly supported by institutional and sophisticated investors.

The share price in the placement represents a 7.3% discount to the last closing price and a 19.3% discount to the 15-day VWAP.

Funds will be used to drive growth initiatives for the MGP.

MGP to add to our gas energy mix

Originally acquired to secure gas supplies for QPM’s TECH nickel project, QPM decided to grow and accelerate the development of the MGP to help meet demand.

QPM’s MGP has 2P gas reserves of 331PJ and over 200PJ of uncontracted gas to help alleviate supply shortages that are expected on Australia’s east coast in the near future.

Those reserves were recently underpinned by a well-workover program that re-invigorated the gas field and increased reserves by 38%.

That well-workover program is continuing to bring wells that were either offline or suspended back into production.

“We are excited at the growth opportunities for the Moranbah gas project and the funds received from this placement will allow us to act on those opportunities ahead of us and generate strong value for shareholders,” QPM CEO David Wrench says.

“There are many milestones ahead of us in the coming months and we look forward to sharing our progress.”

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.