MPO 0.00% 14.0¢ molopo energy limited

Just to keep you posted about Molopo

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    Molopo plans two coalbed projects
    BRISBANE: Junior oil and gas explorer Molopo Australia NL has successfully spudded its production test well at its Mungi coalbed methane prospect in Queensland’s Bowen Basin.
    Melbourne-based Molopo said yesterday that a decision on commercialising its Mungi and Harcourt coal bed methane (CBM) gas projects in the Bowen Basin could be made as early as November.
    This follows the spudding late yesterday of the Mungi-4 well - the start of Molopo’s final round of production test drilling on its promising coal bed methane projects in the Bowen Basin, west of Gladstone.
    “This is a further boost to Australia’s emerging CBM industry already buoyed by the Queensland government’s decision to use coal seam gas from the Bowen Basin to fuel a new $500 million power station in Townsville in preference to natural gas piped from PNG,” Molopo’s managing director Stephen Mitchell said.
    The new three well program is being undertaken at Molopo’s Mungi and Harcourt gas accumulations in ATP564P and PL94 with drilling to be completed by mid-August.
    Oil Company of Australia (OCA) is Molopo’s 50 per cent partner and operator in ATP564P, while Helm Energy-Australia LLC has 25 per cent.
    Molopo expects to soon sign contracts for the sale of CBM gas from its trial production wells in Queensland and generate Molopo’s first cash flow from production.
    A feasibility study on applying new gas extraction technology at the Mungi and Harcourt projects is expected to be completed by December this year.
    Two of the three production test wells in this final drilling program will be surface to in-seam while the third will be conventionally water fracced for direct comparison.
    Water frac stimulation involves injecting of water at high pressure to create a fracture within a particular coal seam to release the gas.
    The surface to in-seam approach drills from the surface until intersecting the target seam, before intersecting a vertical pump well.
    This method exposes a larger surface area and could possibly reduce the number of wells required. It had the potential to generate greater gas flows per well and increase recovery rates at less cost.
    Molopo shares yesterday lost 0.2 of a cent to 2.7 cents in a weaker, overall market.-AAP
 
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