MPO 0.00% 14.0¢ molopo energy limited


  1. 150 Posts.
    Summary of Gloucester project in AJL 2007 AGM presentation (pp30-34 - see below).

    While the NSAI reserves certification has been delayed somewhat since late 2007, there is no doubt that the JV continues to make steady progress.

    The project doesn't simply involve sticking a few rods into the ground and expecting to see cash in your account a few days/weeks/months later. There is considerable work/time required to get these types of projects up and running but the long-life, sustainable cash flows produced will be well worth the wait.

    Let's hope the reserves cert is beyond the market's expectation and the JV continues to make sure and steady progress. In the meantime, we have plenty of time to work out exactly what Mitchell and Beard actually do for MPO other than buy things and extract over $500k+ pa between them. The best thing they appear to have done is bring Gorman and his team on board. Now it might be time for them to follow Wally and move on...

    Gloucester Basin - Overview
    • Acquired in 2002 - Pacific Power.
    – Rural location 100 km north of
    Newcastle (NSW)
    • Coal properties
    – 200 km2 Coal bearing sequence.
    – 11 major seams >2.5 m thick.
    – Average total thickness 30–40 m.
    – Gas Contents 12 – 20 m3/t (daf).
    – Permeability 300mD – 1mD in the
    depth window 100 – 500 m.
    – Steeply dipping

    Gloucester Basin – Exploration
    • History prior to 2007
    – More than 2400 coal core holes.
    – 380 km of minisosie seismic.
    – 9 Pacific Power bore holes.
    – 2 LMG core holes.
    – 1 production well (LMG03).
    – Trial SIS well ( not completed).
    • 2007 to date
    – Community consultation.
    – Collating and interpreting existing
    data set, including existing log
    and seismic data.
    – Approval for 13 exploration
    – Drilled 3 new core holes.
    – Drilled 1 new stratigraphic hole.

    Gloucester Basin – Exploration (2)
    • 2007 Key Drilling Results
    – Confirmed presence of CH4 in
    approximately 10.8 metres of
    Wiesmantel area (different coal
    measures to Stratford area).
    – Confirmed gas content trends
    across the basin are consistent
    with Stratford area.
    – Extended the understanding of
    the basin structure and coal
    distribution significantly.
    – 2 further core holes planned for
    2007, and 5-6 stratigraphic
    holes for early 2008.
    Coal from Wiesmantel Seam

    Gloucester Basin – Production Testing
    • Stratford Pilot (under construction)
    – REF approved by DPI (Aug 07).
    – Located at Stratford on land.
    purchased by the JV (Aug 07)
    – 5 new vertical fracced wells
    – 1 existing well (LMG03).
    – Gas & water gathering system.
    – Enclosed flare system.
    – Produced water used for irrigation.
    – Online Dec/Jan.
    • LMG03 (existing well)
    – W/O & returned to test 28 Aug
    – Gently ramping up production,
    currently approx 300 mcfd & 400-
    500 bbl/day.
    • Weismantel Pilot - Planned Feb 08

    Gloucester Basin – Commercialisation
    • Reserves certification
    – NSAI engaged with first report
    expected by end 2007, subject to
    further review as pilot production
    and other results are incorporated
    in 2008.
    • Pipeline to Hexham
    – Route selection & refinement
    – Consultants for approvals engaged.
    • Gas sales agreement
    – Reviewing potential for small scale
    Power generation at Stratford.
    – In discussion with a number of
    potential offtakers.
    – Ramping up focus in 2008.
    • Target first gas to Hexham 2010.
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