MPO 0.00% 14.0¢ molopo energy limited

are the rumours true that molopo has

  1. 17,050 Posts.
    lightbulb Created with Sketch. 24
    found a large gas resource at Gloucester in the Hunter Valley!!



    Not just hot air
    CRITERION
    Tim Boreham
    October 10, 2006
    Coal seam gas stocks
    A DECADE ago, the idea of tapping methane from coal seams was about as fanciful as harvesting gas from flatulating cows. After all, Australia has plentiful reserves of conventional natural gas.
    The trouble is, the gas reserves aren't conveniently located to serve the fast-growing southern Queensland and northern NSW markets. Energy shortages are looming and the gap will widen if the delayed PNG gas pipeline does not eventuate.

    Already, 25-30 per cent of Queensland's gas is derived from coal seam gas (otherwise known as coal-bed methane gas), up from 2 per cent in 1998. Until recently, coal-seam methane was a dangerous and unwanted by-product of coal mining.

    In a further sign of a maturing sector, Santos last week bid $606 million for the biggest producer, Queensland Gas Company (QGC, $1.45). Last year Santos paid a similar amount for Tipperary's stake in the Fairview seam, while Arrow Energy (AOE, 86.5c) paid $140 million for CH4 Gas.

    The prevailing view is, Santos has raised the price bar: the bid values QGC's 2P (proven and probable) reserves of 422 petajoules at a "pretty rich" (Macquarie Equities' words) $1.36 per gigajoule.

    There's a good chance QGC can increase these reserves to 1000PJ, which would make Santos look smarter.


    A roughie is Molopo Australia (MPO, 4c), which is sniffing around NSW's Gloucester Basin in partnership with AJ Lucas Group.

    Management estimates reserves at 90PJ and there are rumours of a large resource. Molopo also draws some revenue from a 25 per cent interest in the Mungi field in the Bowen Basin.

    Molopo also dabbles in an intriguing side play: a 40 per cent share of a potentially huge CSG resource in China's Shanxi province.

    Tuesday, 21 February 2006. 15:03 (AEDT)
    Residents move closer to affordable gas
    Newcastle residents could be a step closer to gaining cheaper access to natural gas.

    For the past couple of years, gas producer Molopo has been investigating the feasibility of its coal bed methane gas project near Gloucester in the Hunter Valley.

    The company's Stephen Mitchell says recent test results reveal high gas levels.

    He says while further investigation is needed, he is hopeful Newcastle residents will eventually have access to affordable, local natural gas.

    "Newcastle's unlucky in that it's at the very end of the transmission line from the Cooper Basin, so the pipelines go to Sydney and then onto Newcastle so consumers in Newcastle are paying more than any other large city in Australia," he said.

    "So we're hoping that these results will enable us to get gas to Newcastle cheaper than they're currently paying."

 
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