AUSTRALIA: Queensland Pacific Metals Ltd (ASX: QPM) has announced that its subsidiary, QPM Energy, has been awarded a $3 million Frontier Gas Exploration Grant by the Queensland government.
This grant, part of the Queensland Resources Industry Development Plan, will fund a groundbreaking trial program aimed at unlocking gas resources in the Fort Cooper Coal Measures (FCCM), specifically the Fairhill Seam.
The FCCM Production Assessment Project, as it is known, is designed to trial a new series of wells targeting the high-gas-content FCCM, which has been untapped for gas drainage activities.
Success in these trials could lead to an immediate increase in gas production at the Moranbah Gas Project.
Additionally, data obtained from the project will aid in future estimations of gas reserves and resources in the FCCM.
David Wrench, QPM’s Chief Executive Officer, expressed his delight at receiving the funding support.
He stated: “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.”
The project is environmentally and economically significant, aiming to convert a potential waste product and greenhouse gas into a commercially viable resource.
This initiative aligns with QPM’s focus on developing the Townsville Energy Chemicals Hub (TECH) Project, a modern and sustainable battery metals refinery that will produce critical metals for the lithium-ion battery and electric vehicle sector.
The grant funding will be utilised during the 2024-25 financial year, with milestones tied to the successful achievement of several project objectives.
If successful, the project could result in increased economic gas resources, which can be incorporated into QPM’s long-term field development plan.
This initiative represents a significant step forward in Queensland’s efforts to develop its gas resources while minimising environmental impact.
