COOPER Basin focused Real Energy Corporation Limited has executed a non-binding Memorandum of Understanding (MOU) with Weston Energy Pty Limited to sell gas from the company’s Windorah Gas Project in Queensland.
The company says the MOU represents a significant step towards signing a binding Gas Sales Agreement (GSA) between the two parties and covers the purchasing by Weston Energy of three petajoules (PJ) gas per year for a period of five years. A future binding GSA is subject to a number of conditions, including Weston Energy finalising gas transportation arrangements.
The MOU also provides for Weston Energy making a prepayment of A$6 million, which will give Real Energy additional financial flexibility to execute future field development activities. The MOU also allows the company to convert its 2C and 3C resources into reserves. An independent petroleum engineering firm has assessed the 3C gas resources of the Project at 672 Billion cubic feet of gas.
Real Energy managing director Scott Brown said Weston Energy will become our foundation customer for the Windorah Gas Project.
“Real Energy is continuing to make significant progress towards the commercialisation of the Windorah Gas Project, in what is a transformational period for the company. The signing of Weston Energy as our foundation customer follows the signing of an MOU with Santos for Windorah’s gas processing – both are significant and impactful developments for the business.
“We are pleased to be part of the broader gas supply solution that delivers certainty and dependable energy supply to the Australian industry, and we look forward to providing further updates on additional gas sales agreements.”