Qpm Energy Limited · ASX:QPM
Qpm Energy — Investor Presentation (April 2024)
19 slides from Qpm Energy's investor presentation, Apr 30, 2024
Slide 1: Corporate Presentation: Growing East Coast Gas Producer
Corporate Presentation Growing East Coast Gas Producer David Wrench CORPORATE PRESENTATION | April 2024 | ASX:QPM | www.qpmetals.com.au
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer COMPANY DISCLAIMER: The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on their own examina
Slide 3: Renewed Focus on Gas Production
Renewed Focus on Gas Production In August 2023 QPM completed the acquisition of Moranbah Gas Project (MGP) Significant production and reserves − Production rate of ~23TJ / day (8.4PJ / year) − 240PJ 2P reserves + 269PJ 2C contingent resources Compression infrastructure and North Queensland Gas P
Slide 4: Significant Gas Producer with Strong Growth Potential
Significant Gas Producer with Strong Growth Potential Since acquisition, QPM has turned around the MGP and delivered a significant increase to production and reserves. With the change in strategic focus, we are now poised to grow it as a significant standalone gas business Material increase in 2P
Slide 5: Gas Reserves Underpin Growth
Gas Reserves Underpin Growth >200PJ uncontracted gas reserves to underpin future growth 350.0 Moranbah Opportunities Moranbah Power Station (existing) 300.0 New power generation – potential for 300MW grid 250.0 connection >200PJ Compressed Natural Gas (CNG) / Micro-LNG facilities 2P Reserves (
Slide 6: Excess Infrastructure Capacity
Excess Infrastructure Capacity 64TJ / day (23.4 PJ / year) capacity compression infrastructure − Current capacity utilisation ~15% − The only compression infrastructure connected to NQGP Connected to 108TJ / day (39.4 PJ / year) NQGP − Gas transportation from Moranbah to Townsville − Provides op
Slide 7: Problem ….. Or Opportunity
Problem ….. Or Opportunity Safeguard Mechanism CO2e emissions 2023 - 2032 200,000,000 There are 25 coal mines within 150km of Moranbah which 180,000,000 reported CO2e emissions of 17.4 million tonnes in 2021. 34.7mt CO2e 160,000,000 = 687 PJ gas Under the proposed Safeguard Mechanism Reforms 140,000
Slide 8: Moranbah Project – Capturing Waste Coal Mine Gas
Moranbah Project – Capturing Waste Coal Mine Gas The Moranbah Project already collects, processes and transports waste mine gas for beneficial use. The Moranbah Project overlaps and is connected to the following mining operations: − Anglo American’s Grosvenor mine − Anglo American’s Teviot Brook
Slide 9: Moranbah Project Turnaround
Moranbah Project Turnaround Moranbah Project Gas Supply Successful transition of ownership and establishment of 40.0 operational control 35.0 Reduced and stabilised field operating costs Gas supply +5 - 6TJ/day in 8 months 30.0 5 - 6TJ/day – Optimisation of well operating parameters 25.0 – Wor
Slide 10: Moranbah Project Growth Phase Next 12 Months
Moranbah Project Growth Phase Next 12 Months Moranbah Project Gas Supply 40.0 Gas supply +5-10TJ/day 35.0 5-10TJ/day – Workovers – producing well count 118 -> 130 wells 30.0 – Gathering system optimisation and de- 25.0 bottlenecking – Teviot South drilling program – 7 new laterals TJ/day 20.0 15.0
Slide 11: Growth Blueprint
Growth Blueprint Moranbah Well workover program Production Drilling of 7 new production wells Utilisation of mine waste gas that does not meet pipeline specifications Additional third-party gas supply, leveraging Safeguard Mechanism legislation Moranbah Townsville Dyno Nobel Ammonium Nitra
Slide 12: Teviot South Drilling Program
Teviot South Drilling Program Full program includes drilling 16 new laterals in the highly productive GM seam of PL191 Phase 1 of the program includes drilling and completing 7 SIS well pairs in 2024 1st vertical well spudded on the 23rd April Phase 1 is expected to be completed by end Octob
Slide 13: Teviot South Drilling Program
Teviot South Drilling Program 1st three vertical well pads ready for drilling Rig – Lucas rig DRS 118 on location spudding 1st vertical well on TB118V1 GROWING EAST COAST GAS PRODUCTION Page | 13
Slide 14: Workover Campaign
Workover Campaign 125 6 300 120 4 5 250 Cumulative Production Volume, TJ 115 Incremental Gas Rate, TJ/d Producing Well Count 4 110 200 3 105 150 118 116 100 110 2 107 100 106 103 95 99 1 50 96 90 0 0 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 GROWING EAST COAST GAS PRODUCTION Page | 14
Slide 15: Company Snapshot
Company Snapshot Company metrics QPM share price – 12 months 0.14 Market capitalisation A$103m 0.12 Debt1 Nil 0.10 0.08 Pro Forma Cash1 A$30.6m 0.06 Enterprise Value A$72.4m 0.04 0.02 Shares outstanding2 2,013m 0.00 Options outstanding2 175.9m Source: Yahoo Finance Performance rights2 66.1m 1 – as a
Slide 16: Appendices
Appendices Ox
Slide 17: Moranbah Project Reserves and Resources
Moranbah Project Reserves and Resources Gas Reserves1 Gross (100%) Net2 Category/Subclass (BCF) (PJ) (BCF) (PJ) Proved Developed Producing 54.7 56.8 52.5 54.6 Developed Non-Producing 1.5 1.6 1.5 1.5 Undeveloped Justified for Development 161.5 167.8 155.0 161.1 Total Proved (1P) 217.7 226.2 209.0 217
Slide 18: TPS Operation
TPS Operation Net back Gas Price at Various Electricty Prices $40.00 TPS is a 242MW power station consisting of a 160MW gas Net back gas price ($/GJ) $35.00 turbine and 82MW heat recovery steam generator (HRSG) $30.00 $25.00 TPS can operate in 3 modes $20.00 $15.00 − Open cycle (turbine only) –
Slide 19: Queensland Historical Electricity Price
Queensland Historical Electricity Price Target TPS operating period GROWING EAST COAST GAS PRODUCTION Page | 19