Key elements of the funding package involve the Sentient Global Resources Fund contributing cash and financing QGC’s obligations to fund Pangaea Oil & Gas under the Argyle Development Deed; Incitec Pivot Ltd exercising a final tranche of convertible notes; and a major institutional investor, who is currently carrying out technical due diligence before making a major equity investment.

In the event that the un-named institutional investor elects not to participate, Elph Pty (a company controlled by QGC director Dale Elphinstone) has agreed to provide matching equity funds, though this will require QGC shareholder approval.

“When combined with the anticipated project finance and the undrawn Incitec Pivot convertible notes, these arrangements will mean that QGC has funding in place for the total cost of the first phase of the Argyle Gas field development," said QGC managing director Richard Cottee from Brisbane.

Sentient will acquire a 10% interest in ATP 632P (Berwyndale South), in which QGC has 100% ownership, for A$3 million; and a 10% interest from QGC’s share of ATP 610P (Bellevue) and ATP648P for A$750,000 (as previously agreed last December).