Thanks @sandfire, much appreciated!
DW crammed a lot into his allocated 13min at the very end of the conference.
Some important takeaways for me that perhaps are not evident or appreciated from the slide pack:
* Fully integrated business - produce, transport & sell gas.
* At $12/GJ east coast govt-set price, current gas reserves ofQPME within our petroleum leases are valued at $3.5B!
* QPM have gone from zero to doing around $8-10M/month.
* QPME is the only party that has infrastructure and supply into the NQGP.
* Props to Dyno for support and facilitating transaction handover.
* Mature but stable gas field. Production outputis directly linked to number of producing wells.
* Latent capacity around double current, without any additional infrastructure investment.
* Very pleased with progress on current 7 well drill campaign.
* Growth profile fully funded.
* New pipeline to Gladstone is longer term goal, but would be viable with a bigger reserve.
* Grosvenor fire actually indicates the Moranbah field has more gas than presently anticipated or measured (even in the oldest parts) so very confident of a reserve upgrade.
* Material cost down expectation with renegotiation of NQGP & TPS contracts.
Have been surprised that there wasn't more an emphasis on abating met coal miner emissions, improving their safety, and supporting the TECH to be carbon negative. Though given the limited reach of the green nickel messaging success over the life of the TECH development, understandable.
At the moment it seems it's all about increasing production and proving up reserves.
At a point where:
- the energy market operator is saying nuclear is a no go, and that a renewables-focused, battery & pumped hydro-firmed grid with gas-fired backup is the way to go,
- southern Australia gas fields in decline,
- realisation that green hydrogen may be harder, more expensive and take longer than anticipated,
- Safeguard Mechanism penalties increasingly put coal miners in a vice
QPME is well poised to capitalise (and eventually be ready to also support the TECH), and IMO has a very solid platform to support the business split.
