MPO 0.00% 14.0¢ molopo energy limited

$10m development program

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    Molopo Australia NL has announced a $10 million development program for the first phase of the Mungi coalbed methane gasfield in Queensland.
    The first phase includes 11 wells (of which nine are new), a pipeline and new compressor capacity, with first gas from the wells expected in July. The drilling program is expected to start in May and new wells will be progressively brought on stream over a four-month period.
    The Mungi coalbed methane (CBM) gasfield is located in PL94 in the Bowen Basin, and is the closest CBM production licence to the significant Gladstone industrial market. The development program announced today represents about 12 percent of Mungi's known gas potential and will be jointly undertaken by Molopo and its Mungi partners, Oil Company of Australia and Helm Energy Australia LLC.
    Under an existing farm-in arrangement with Helm, Molopo will not need to contribute any funds towards the development program.
    "We are in negotiations with several potential gas purchasers and expect to enter into formal gas sale arrangements later in the year," Molopo's managing director, Mr Stephen Mitchell, said today. "While it is too early to predict exact production levels from this first stage, we estimate that Molopo's share of gas will peak at close to 1.5 terrajoules per day (TJ/day) by late 2003. "Molopo's ultimate target for its share of gas from the Mungi field is to produce 5 to 6 TJ/day," he said.
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