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Molopo announcement - Bowen Basin Farm-In

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    1,570 posts.
    MPO - To Farm-In to advanced coal bed methane 1/1 (M)
    MPO OCA - ASX Company Announcement
    $enr2 THIS IS A PRIORITY ITEM
    24 July 2002
    Part 1/1
    --------
    MOLOPO AUSTRALIA NL
    -------------------

    HOMEX - Melbourne
    -------------------------
    To Farm-In to advanced coal bed methane gas project

    Molopo Australia NL announces that the Company's offer to Farm-In
    to Authority to Prospect 602P has been accepted by Oil Company of
    Australia Limited ("OCA").

    ATP602P is located in Queensland's Bowen Basin and is in close
    proximity to OCA's existing production lease (PL94) where OCA has
    already established a commercial coalbed methane ("CBM") operation
    and where Molopo is currently earning a 25% interest in the Mungi
    Prospet.

    Under the terms of the agreement, Molopo and Helm Energy-Australia
    LLC ("Helm") will each earn a net 25% interest in the permit by
    spending $800,000 on a production test program where drilling is
    expected to commence in late July or early August. OCA will retain a
    50% interest in the permit and remain as operator of the project.

    Molopo's $400,000 commitment to the farm-in will be funded by Helm
    from the $6.5 million that Helm is contributing towards Molopo's work
    commitments in ATP564P and PL94, as was announced to the ASX on 4
    April 2002.

    ATP602P contains the Timmy Prospect, which covers an area of 84.5 sq
    km with the potential for in excess of 230 PJ of sales gas. Previous
    production tests on the Isla-1 well, carriedout by Conoco in 1996,
    demonstrated a stable gas flow rate of just over 100,000 cubic
    feet/day before increasing to around 150,000 cubic feet/day prior to
    being shut in. Based on this result Molopo believes that, by using
    improved stimulation techniques employed since 1996, ATP602P
    represents an excellent appraisal project that should increase the
    Company's reserves during this financial year.

    The Farm-In to ATP602P is subject to final documentation and
    ministerial approval.

    Andrew Metcalfe
    COMPANY SECRETARY

    Website: www.molopo.com.au Email: enquirieslowell.net.au

    ends - AAP


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