A Memorandum of Understanding (MOU) has been executed between Queensland Pacific Metals Limited subsidiary, QPM Energy (QPME) and Blue Energy for gas supply from Sapphire pilot test wells.
Blue is now flaring gas (with government permission) from pilot test wells drilled on its Sapphire Block PL 1034, located in the Northern Bowen Basin (NBB) and close to the Moranbah Project.
Blue began drilling pilot test wells on the Sapphire Block in 2022 and has successfully demonstrated gas flow rates.
QPME is in the midst of finalising the Moranbah Project acquisition. The Sapphire Block is located next to PL191, one of the Moranbah Project’s tenements. This gas, which is now being flared, is within 3 km from the Moranbah Project’s low-pressure collection systems.
According to QPM, each party undertakes to negotiate and enter into a gas supply agreement (GSA) with the intention of implementing this GSA as soon as the Moranbah Project acquisition is completed.
“This opportunity with Blue is one of several near-term opportunities which QPME is working on to get cost-effective gas into the Moranbah infrastructure system to increase overall production. As soon as we take control of the Moranbah Project, we plant to execute and implement these opportunities expeditiously,” QPME CEO David Wrench said.
