Two further fundraising initiatives completed in recent days mean the company has raised $29.7 million in new funds this week.
The Energy Infrastructure Trust (EIT), managed by ANZ Infrastructure Services Limited, will acquire $7.5 million of QGC stock at 36 cents per share giving EIT a 6.2% stake in QGC.
In addition, Elph Pty Ltd will acquire $5 million of QGC stock at 36 cents per share raising Elph’s stake in QGC to 10%.
QGC is positioning itself to be a major force in the clean-energy scene in south-east Queensland, according to managing director Richard Cottee.
“QGC now has sufficient certified 2P gas reserves to fuel QGC’s proposed power station at Chinchilla, as well as meeting our current contractual arrangements with CS Energy and Incitec Pivot,” he said.
“Given the growth of both industry and population in south-east Queensland, we should find a ready demand for our gas and electricity.”
QGC had targeted $10 million from the share purchase plan, but 56% of shareholders applied for shares under the issue with an average application of $3,237 each. Shareholders met today and approved the larger amount. The 47,714,658 shares will be issued today.
“The response from QGC’s shareholders is a resounding vote of confidence in the company’s projects” Cottee said.
“Shareholders can be assured that QGC will have sufficient equity funds available to fund the upcoming gas developments without any further equity raising,” Cottee said.
The company has already placed orders for compression equipment which will form the central components of the gas processing facility and will now be able to continue further work with the aim of supplying first gas in March 2006.
QGC now expects to be able to bring forward its Chinchilla Power Station development, according to Cottee.
“Testing of the pilots at the Berwyndale South and Argyle Gas-fields has exceeded expectations,” he said.
“We now have certified proved and probable (2P) reserves of coal seam gas totalling 470 petajoules, equivalent to 452 billion cubic feet. That reserve number more than doubles when possible gas reserves are included.
“But not content with Berwyndale South and Argyle, the Company is now testing the Lauren mini-pilot consisting of three wells, and located some 10km from both Argyle and Berwyndale South. While it is still early days, there is every probability that Lauren will develop into a commercial gas field in its own right, with a potential at least as significant as the other two.”
This testing program indicates that the portions of ATP 632P and ATP 620P located over the “Undulla Nose” represent one semi-continuous gas field extending from Berwyndale South through Lauren and onto Argyle, according to Cottee.
“If this proves to be the case, the potential for reserves of coal seam gas from this area would far exceed the quantum of certified gas reserves already established,” he said.
“Our plan is for the Chinchilla power station to have a capacity of about 100 megawatts and to supply electricity directly into the National Grid. Chinchilla will be our priority, once we have the gas flowing to Swanbank and to Gibson Island, to service CS Energy and Incitec Pivot.
“ANZ Infrastructure Services Limited has expressed a keen interest in funding the construction of the Chinchilla Power Station, and has negotiated a first and last right of refusal to develop and invest in the power station.”
