The funds will provide a stable, funded platform to underpin the growth of the company’s gas supply and energy portfolio. Pic: Getty Images.
- QPM announces new funding agreements with Dyno Nobel
- Funding to support drilling and gas infrastructure optimisation
- The company aims to commercialise its Moranbah Gas Project in Queensland
Special Report: QPM Energy has executed new funding agreements to bolster the balance sheet as it pursues growth opportunities across its gas and energy portfolio.
Since acquiring the Moranbah Gas Project in 2023, the company has increased the project’s 2P reserve position by 166PJ to 435PJ (as at April 2025), making its 315PJ of uncontracted gas reserves one of the largest uncontracted gas portfolios in the Eastern Australian market.
At current production of ~10-11PJ/year, the company has ~40 years of 2P reserve life.
The challenge now is to accelerate commercialisation of the uncontracted reserve base, potentially via additional gas offtake in North Queensland, a pipeline connection from Moranbah to central and southern gas market networks, or developing and acquiring additional electricity generation capacity.
Underpinning QPM Energy’s (ASX:QPM) development plans are the new funding agreements with foundation customer Dyno Nobel including a prepayment facility of up to $40m for gas delivered from April 2026 to March 2033.
An initial drawdown amount of $6m plus $21m drawn under the $30m additional funding facility will be used to fully repay the company’s existing working capital facility with Dyno, currently drawn to $27m.
There is no change to the existing $120m Development Funding Facility (DFF) which is not repaid in cash but rather amortises as QPM delivers gas into a New Gas Sales Agreement with Dyno Nobel.
To date $38.3m has been drawn from the DFF to fund:
- The Teviot Brook South 7 well drilling program;
- Existing well workovers; and
- MGP gas gathering infrastructure optimisation works.
Watch StockTake: QPM’s great gas gains certify Moranbah’s potential
Stable and secure finances underpin growth
QPM is finalising planning for a new production well drilling program targeted to begin later this year to be funded under the DFF.
“In just under two years, we have reinvigorated the MGP and developed an exciting integrated energy business,” CEO David Wrench said.
“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.”
This article was developed in collaboration with QPM Energy, 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.
