MPO 0.00% 14.0¢ molopo energy limited

Molopo valued at more than 10 cents / share of GAS, page-2

  1. 80 Posts.
    see broker report

    This research was conducted by Bell Potter Securities dated 30/08/2002.
    Molopo - Speculative Buy.
    Molopo Australia is a well funded junior,
    currently undertaking significant appraisal
    activities of coalbed methane (CBM)
    projects in the Bowen Basin of Queensland.
    It is also appraising its CBM project in Luilin,
    China, and undertaking CBM exploration in
    the Bowen Basin, Queensland and the
    Gloucester Basin of NSW.
    In its Bowen Basin CBM activities during the
    last year the company has:
    sold 25% of its 50% interest to Helm
    Energy Australia LLC for US$1.5 million
    cash and US$3.5 million exploration,
    appraisal and development funding,
    announced proven and probable reserves
    of over 80 petajoules (PJ) of gas in its
    ATP564 prospects,
    farmed-in for a 25% interest to the
    Mungi prospect in PL94, estimated to
    have recoverable reserves of over 100PJ,
    farmed-in for a 25% interest to ATP602,
    containing the Timmy prospect, that could
    have reserves of the order of 230 PJ.
    Current interest relates to appraisal drilling
    of the Mungi and Harcourt projects. In
    partnership with the leading CBM operator
    in Australia, Origin Energy subsidiary Oil
    Company of Australia (OCA), Molopo is
    drilling both vertical wells and innovative
    horizontal completion wells, to test for
    relative gas productivity. Both these
    prospects have flowed gas previously and
    the new wells will be placed on extended production test prior to larger scale field
    development. Molopo has entered into a
    sales contract with a local cotton drying
    operator to take its share of the gas
    produced from the extended production
    OCA is already producing CBM gas from
    over fifty wells in nearby project areas
    within ATP564, which lies close to
    infrastructure and the gas pipeline to
    Molopo’s share of a similar fifty well
    development at Mungi or Harcourt could
    provide the company with annual
    production of the order of 1.5PJ, and
    provide revenue of the order of $4.5 million
    per annum. This level of production could
    be achieved within three years of successful
    appraisal. Ultimately, just these two projects
    could sustain a 100 well development for a
    25 year period.
    Molopo has at least seven other identified
    prospects within its Bowen Basin inventory
    awaiting initial test drilling, and two
    prospects awaiting production testing.
    We see considerable upside potential from
    further exploration, appraisal and
    development drilling over the next twelve

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Currently unlisted public company.

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