QPM Boosts Moranbah Gas Reserves by 31%, Unlocking Major Growth Potential
QPM Energy Limited has announced a significant 31% upgrade to its Moranbah Gas Project's 2P reserves, now certified at 435PJ, reinforcing the asset's status as a tier 1 gas resource with substantial uncontracted volumes.
- Moranbah Gas Project 2P reserves increased to 435PJ, up 31% from March 2024
- Uncontracted gas reserves exceed 300PJ, one of the largest in Eastern Australia
- Reserve upgrade follows comprehensive geological reassessment and production data integration
- Independent certification by Netherland, Sewell & Associates Inc confirms robustness
- QPM highlights ongoing resource base development and plans to accelerate commercialisation
Significant Reserve Upgrade at Moranbah Gas Project
QPM Energy Limited (ASX: QPM) has delivered a substantial boost to the Moranbah Gas Project (MGP), announcing an independently certified increase in its 2P gas reserves to 435 petajoules (PJ) as of April 30, 2025. This represents a 31% uplift from the previous estimate of 331PJ reported in March 2024, underscoring the project's growing strategic importance in the Eastern Australian gas market.
The upgrade was certified by Netherland, Sewell & Associates Inc (NSAI), a respected independent petroleum engineering consultancy. Their assessment incorporated a thorough reassessment of geological data, integration of historical production records, and the impact of QPM's successful workover program, which collectively revealed a larger volume of recoverable gas within the project's petroleum leases than previously understood.
Uncontracted Gas Reserves Position QPM for Market Advantage
Notably, QPM holds over 300PJ of uncontracted gas reserves, positioning the company with one of the largest uncontracted gas portfolios in Eastern Australia. This sizeable inventory offers significant commercial flexibility and potential for future contract negotiations amid tightening gas supply dynamics in the region.
Since acquiring the MGP in August 2023, QPM has increased the project's 2P reserves by 166PJ, reflecting an aggressive and successful resource development strategy. The company’s CEO, David Wrench, emphasized that the ongoing refinement of the resource base confirms the MGP as a tier 1 gas asset with further upside potential.
Economic Viability and Development Outlook
The reserve estimate was prepared in accordance with the 2018 Petroleum Resources Management System guidelines, ensuring rigorous standards of qualification and independence. Economic analyses underpinning the reserve classification considered current gas prices, operating costs, and capital expenditure forecasts, all deemed reasonable by NSAI based on QPM’s data and market conditions.
QPM’s strategic approach includes leveraging these reserves to underpin development plans and accelerate the commercialisation of the MGP. While the announcement stops short of detailing specific timelines for contract execution or production ramp-up, the enhanced reserve base provides a solid foundation for future growth and market engagement.
Implications for the Eastern Australian Gas Market
The Moranbah Gas Project’s reserve upgrade arrives at a critical time for the Eastern Australian gas market, which faces increasing demand and supply constraints. QPM’s expanded reserve position could play a pivotal role in alleviating regional supply pressures, especially given the large volume of uncontracted gas available for new commercial agreements.
Investors and market watchers will be keen to monitor QPM’s next steps in contract negotiations and development milestones, which will be crucial in translating these reserve upgrades into tangible revenue streams and shareholder value.
Bottom Line?
QPM’s reserve upgrade cements Moranbah’s status as a key gas asset, but the path to commercialisation will be the next critical test.
Questions in the middle?
- When will QPM begin converting uncontracted reserves into binding gas supply agreements?
- What are the expected timelines and capital requirements for developing the expanded reserves?
- How will regional gas market dynamics influence QPM’s pricing and contract strategies?
