Queensland Pacific Metals gets A$3mn grant from Queensland government
Sydney-listed Queensland Pacific Metals (QPM) on May 10 announced that its subsidiary, QPM Energy, has been granted an A$3mn ($1.98mn) Frontier Gas Exploration Grant under the Department of Resources' Queensland Resources Industry Development Plan.
The grant will finance a trial programme of new wells targeting the Fort Cooper Coal Measures (FCCM), including the Fairhill Seam. The FCCM contains substantial gas reserves, yet it currently lacks gas drainage activities and does not contribute to QPM Energy's reserves or resources at the Moranbah gas project, QPM said.
QPM anticipates that the successful implementation of the trial wells will result in an immediate increase in gas production and provide valuable technical data for future estimation of gas reserves and resources within the FCCM. The project entails trialling a pre-draining technique involving the drilling of wells into the FCCM ahead of longwall mining operations. Notably, the FCCM sits above the coal seams subject to mining, and no commercial gas drainage activities are presently conducted.
If the project proves successful, it will offer several key benefits, including the conversion of gas from a waste product and greenhouse gas emission into a commercially viable resource. This transformation will enhance the economic returns from the Moranbah project.
"The grant will provide the funds to complete a new drilling technique which has the opportunity of not only increasing gas production from the Moranbah project but will also result in a significant reduction in carbon emissions from the Bowen Basin," said QPM CEO David Wrench.
The company recently announced a shift towards gas and energy as the core focus of its business. QPM acquired the Moranbah gas project and other assets from the Arrow AGL joint venture. The company will work on the development of a portfolio of new baseload and peaking generation located at the Moranbah facilities. This flexible generation portfolio is intended to use waste coal mine gas and MGP production to supply up to 300MW of power.
The company also plans to develop CNG and micro-LNG facilities in Moranbah and Townsville to distribute gas to north Queensland energy users.
QPM April 29 announced an increase in its certified reserves at the Moranbah gas project in Queensland. The company reported a 38% jump in its proven and probable (2P) gas reserves, now totaling 331 petajoules (8.8bn m³), compared with the March 2022 estimate of 240 petajoules.