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    An Upstream EnergyCompanyMOLOPO MOLOPO MOLOPO MOLOPO AUSTRALIA N.L.AUSTRALIA N.L.AUSTRALIA N.L.AUSTRALIA N.L.June 2002
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    MAJOR COALBED METHANE PROJECTSMolopo has 4 Major Energy Projects :1. Bowen Basin ­ Queensland 25% 2. Gloucester Basin ­ NSW 18% - 50% *3. Liulin CBM Project in China 50%4. Clarence Moreton Basin ­ NSW 62% Experienced board & managementStrong reserves with exciting appraisal programme Encouraging production test resultsPossibility of early cash flow from QLDSubstantial upside potential in all projects*Subject to Government approval and final joint venture documentation.
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    HIGHLIGHTSMolopo's 12 month drilling programme is likely to include:Initially 2 CBM production wells at Mungi in QLD and possibly 5-10 more later in the year.1 CBM production well at Harcourt in QLD.2 CBM production wells & 2 core holes in the Gloucester Basin.1 CBM production well (continuation of existing test) at Liulin,China.
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    CORPORATE PROFILECapital Structure - Ordinary Shares: 244.9m- Options Listed (A$0.20): 80.6m- Shares with $0.06 to pay: 19.4m- Management Incentive Options: 10.5mMarket Capitalisation: $8million Cash $2.5m. Debt Free.Expected Free Carry of $6m in QLD and $2m in NSWAustralian Stock Exchange Symbol - MPO Web Site - www.molopo.com.au
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    MOLOPO ­ Board & ManagementMr. Don BeardBSc (Hons) [Chairman] Joined Molopo in March 2001. Most recently was Managing Director of Cultus Petroleum NL and before that Executive Director of Peko Oil Ltd . Mr Beard has an excellent track record in successfully developing oil and gas companies and projects worldwide. Mr. Stephen MitchellB.A., M.A. [Managing Director] Joined Molopo in September 1999 from a corporate advisory / investment banking background. Mr. Mitchell has substantial experience in advising, managing and financing resource companies and projects. Mr. David Casey B.Sc. (Hons.), MAusIMM [Director -CBM Operations] Has over 10 years experience in CBM exploration and appraisal in Australia, Asia, North America and Africa and has tested in excess of 1,000 coal seams.Formerly Mr Casey owned and managed his own specialised CBM consultancy company.Mr. Wally BorovacB.Com. [Non-Executive Director] Mr Borovac joined the Molopo board in November 1999. He is Finance Director with Amnet Limited in Perth and brings specialised financial expertise
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    CBM IN QLD­ Oil Company of AustraliaMolopo has a 25% interest in ATP564P in QLD's Bowen Basin with Oil Company of Australia holding 50% and operating.In addition Molopo is earning a 25% interest in the adjacent undeveloped northern section of PL94.Molopo will concentrate on the Mungi and Harcourt prospects to obtain an early cash flow.Production wells at Mungi and Harcourt have been drilled and fracced. Early results are encouraging.Further production wells planned for 2002.
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    CBM IN QLD ­ 2002 ProgrammeTwo test production wells at Mungi ­ June/July, possibly followed by commercial development.Second test production wells at Harcourt ­June/July (first well peaked at 310,000 scfd).Possible gas sales from Mungi in late 2002/early 2003.Molopo has a free carry on up to $6m of expenditure.
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    CBM IN QLD ­ Nearby CBM ProductionMolopo is exercising an option to earn 25% of northern section of PL94.OCA is operating a successful CBM project in PL 94.OCA has over 50 producing CBM wells in PL 94 and has plans to drill more. PL 94 represents one of three commercial CBM fields in Australia and is adjacent to ATP564P.
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    1 - 1.5bcfResources/WellHarcourt & Mungi Prospects Only (100%)25%Pre-Tax IRRUp to 175Development Wells:A$31 mCapital Required250,000/dayInitial Daily Production/ Well:24 yearsLife of Project200bcfSales Gas:A$220mOperating Costs ­(includes pipeline & royalty)500bcf +Gas In Place:A$100mCapital Cost15.7 m3/tGas Content:A$600mRevenue (escalated)11-1-15.3 metresNet Coal:A$2.50/mcfGas Price (wellhead)68sq. kmAcres:* Proven reserves have not yet been established. The numbers above are indicative only and represent 100% of the project ­ note these are not forecasts.CBM IN QLD ­ Preliminary Economics
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    CBM IN QLD ­ Potential CBM Resource21584237736Total3176344829.0130.4Jellinbah533106654620.378.4Baralaba509101951415.5104.3Don20440957811.052.4Duaringa1032074465.174.1Minnie521043564.954.6Sirius1032073564.0129.7Lilyvale40813184.943.3Oak Park12925851711.1034.8Harcourt16633253014.333.9MungiEstimated Recoverable GasGIP(bcf)GasContent(scf/t)NetPay (m)Area(km2)Project/Lead
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    CBM IN QLD ­ Applying the Latest TechnologyNew Technology
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    CBM IN NSW ­ Gloucester Basin
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    CBM IN NSW ­ SummaryMolopo will have an 18.18% interest in PEL285 located 100km north of Newcastle subject to government approval and final joint venture documentation.Molopo has an option to earn up to 50% once production testing is undertaken.Nine CBM coreholes have been drilled within a 5km2area of the permit called the Stratford Prospect.The Stratford Prospect is estimated to contain 90bcf of gas-in-place.Substantial potential to increase the resource base exists throughout the rest of PEL285 which is approximately 200sq km.
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    CBM IN NSW ­ Gloucester BasinNine CBM coreholes drilled in the permit offer substantial encouragement with respect to gas content, reservoir thickness and permeability.The future work programme is expected to include two production test holes and two coreholes. Molopo has a free carried interest in the next phase of the work programme.Catch-up funding post the proposed work programme will allow Molopo to earn 50%.
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    CBM IN CHINA ­ Drilling & TestingFraccing operations on the LW-L1B well4 well pilot production test recently completed4 stimulation techniques used. Water Frac appears likely to produce good gas flows. Requires further testingResource estimate of 700bcf-860bcfMolopo is surrounded by BP, Texaco and Phillips
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    CBM IN CHINA - Liulin Contract AreaBP-AmocoBP-AmocoBP-Amoco
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    Three exploration holes drilled at Liulin (~600m deep) with up to 13 metres of net coal in each hole.Tests confirm these seams host favorable gas contents (15m3/t), permeability (up to 30md) and pressure regimes to facilitate commercial CBM production.4 well pilot production programme undertaken in 2001 to test completion techniques. Liulin sits south of the Beijing pipeline, east of the Xian pipeline and north of the proposed Shanghai pipeline.S. A. Holditch & Associates of Texas ­ Independent CBM experts, estimated probable reserves of 340bcf in the northern section of Liulin.CBM IN CHINA ­ Results to Date
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    CBM IN CHINA - Pipelines
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    CBM IN NSW ­ PEL 13 & 426Combined area 8,500km2Molopo 61.82%, Pacific Power 20%, St Barbara 18.18%Prospective for both CBM and conventional gas21 Petroleum wells drilled to date. Best results have been:!Hogarth 2 ­ GTS 500 mcfdfrom Heifer Creek Sandstone!Picabooba ­ GTS 465 mcfdfrom Ripley Road Sandstone!Clifden 2 ­ GTS 100 mcfdfrom the Gatton Sandstone
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    CBM IN NSW ­ Basin Geology & Tullymorgan Well Molopo Tullymorgan 1 well drilled in May/June 2001.Objective was to test Walloon Coal Measures and Koukandowie sandstones.43 coal seams with an estimated 21 metres of net coal and low permeabilities.Desorption tests indicate gas contents of around 290-320 scf/t and 98-99.8% methane.
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    Australian CBM Experience Parallels US GrowthInitial US CBM production drive by tax credits.Growth has continued after their suspension in early 1990's.Current US CBM production of 1.4tcf p.a. (A$7billion) meets 7% domestic supply.50% higher than total Australian domestic demand of 800bcf.US Coa l Sea m Ga s P roduction-2004006008001,0001,2001,4001987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999(bcfpa)Total Australian 2001 dem and 800 bcfEastern Australia 2001 dem and 520 bcfQueensland CBM Production05101520253019951996199719981999200020012002(bcf pa)
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    GAS RESERVES IN EAST AUSTRALIA -Adequate Cover with CBM634716Reserves Coverage (years)37.227.99.4Total East Australia15.014.01.0Coalbed Methane3.62.51.1Bass/Otway13.58.94.6Gippsland5.12.52.7Cooper BasinTotal Potential(tcf)Sub-Commercial& Potential Reserves (tcf)Total [email protected] Jan 2002(tcf)SourceSource: AGSO, Origin/OCA
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    EMERGING GAS MARKET OPPORTUNITIESEastern Australian Gas Supply02004006008001,0001,2001,40020012002200320042005200620072008200920102011201220132014201520162017201820192020Gas (PJ)GippslandCooperOther BasinsCBMDemandSource: ACIL StudyOnly max 30PJ pa included for CBM from Bowen, Surat and Sydney projects
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    WHAT HAS CHANGED FOR CBM?CBM sales in the US are estimated at A$7 billion/year.Three existing commercial CBM projects supply over 20% of Queensland's gas demand. Expected to reach 25% by mid-2002.Origin/OCA, Tipperary, Molopo and others committing over $300m.Growing success of CBM/CMM outside of the US and Australia (i.e UK, China, Eastern Europe, and India).Spectacular success of several small US CBM companies.
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    LISTED AUSTRALIAN COMPANIES IN CBM-11 (conv)Otway, Gunnedah9CSM/ConvEastern Star*585Bowen, Clarence/Moreton,China, Gloucester8CSMMolopo1-5N/ASydney46CSMSydney Gas*10N/ASurat, StyxClarence/Moreton8CSM/ConvArrow Energy*10N/ASurat30CSM/ConvQld. Gas25270**Surat, Bowen2,140Integrated GasOrigin/OCADaily Production(TJ/D)DisclosedReserves (PJ)Focus AreaMarket Cap.($m)TypeCompany(ranked by reserves)*New project estimates** Does not include ATP564P
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    CBM STATUS IN AUSTRALIA (I)Existing Commercial ProjectsN/A550-650N/AGasContent(scf/t)2.5-3.50.92ReservesPer Well(bcf/well)N/A15N/A8,5004,000250736Tipperary,OCAOCAOCAFairview-DurhamMoura/NE BowenPeatCoalThickness(m)ResourcePotential(PJ)AnnualProduction(PJ)OwnersProject
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    CBM STATUS IN AUSTRALIA (II)Appraisal ProjectsN/AN/AN/ACH4MoranbahN/AN/AN/AOCASuncorATP692Surat200*12517OCA, Helm Molopo,Harcourt40-80**10-3055-140QGCAberdeen/BerwyndaleN/A13-3750-600Lucas, MolopoStratfordN/A10-3055-140Arrow EnergyATP683N/A3-5300-450SGCCamden300*15530OCA, Helm MolopoMungiAvg. PeakWell Rates (mcf/d)CoalThickness (m)GasContent (scf/t)OwnersArea* Estimates only based on announced results** Partially ­ dewatered rates only
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    CBM STATUS IN AUSTRALIA (III)Exploration ProjectsBiogenic/Thermogenic exploration in 2 NSW basins.Carbon MineralsGunnedah & Murray BasinsNot availablePurus EnergyOtway Basin3-5 well pilot program planned in 2002GastarGippsland Basin$6m IPO funding 5-9 CBM wells in ATP593PSunshine GasBowen BasinPlanning 3 CBM wells in PEL 428Strike OilGunnedah BasinTesting planned on 5 core holesEastern Star GasMelbourne TroughScope of ProgramOwnersProjects
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    Projects comparable with world's best.Mix of projects from advanced appraisal stage (Bowen, China) to exploration-appraisal (Gloucester).Excellent marketing fundamentals especially Queensland:!Close to fast-expanding gas markets!Close to existing infrastructure!Cost advantages of competitors!Strong JV partnersMOLOPO'S COMPETITIVE ADVANTAGES
 
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