MPO - Strong Gas Flows In QLD

Strong Initial Gas Flows in Qld Well & Spudding of Timmy 1

MOLOPO AUSTRALIA NL 2002-10-22 ASX-SIGNAL-G

Molopo Australia NL announces that the Mungi 4 production well in
Queensland's Bowen Basin is currently producing around 700,000 cubic
feet of gas per day. Although de-watering is not yet complete, the
well has averaged 472,000 cubic feet/day over the past two and half
weeks.

Current flow rates from the Mungi 4 well are considerably higher than
the anticipated minimum threshold required for the commercial
development of the Mungi field.

The coals are not yet fully dewatered and continued testing is
required before long-term production estimates will be made.

Molopo will use its share of the gas to supply gas under a contract
announced to the ASX on 13th August 2002.

Molopo also announces that it has spudded the Timmy 1 well in
ATP602P, which represents the vertical and first of two wells for the
Timmy surface to in-seam (SIS) appraisal programme.

The Mungi 4 well, located in PL94, is part of a four well program
designed to increase reserves and demonstrate the optimum drilling
and stimulation technique prior to commercial development.

The Mungi 2 and 3 SIS completion wells have been drilled and will be
placed on production test once cleanout operations are concluded.

Drilling has been successfully concluded at Molopo's Harcourt SIS
wells in ATP564P. Production testing is expected to commence in two
weeks following completion of the wells.

Latest estimates indicate the Mungi Prospect covers an area of 34
sqkm with the potential to contain 163PJ of recoverable gas. PL94
adjoins the southern border of ATP564P. OCA currently operates a
successful CBM project in the southern section of PL94 comprising
over 50 wells.

The Dawson Valley pipeline passes through the middle of the Mungi
Prospect before connecting with the Wallumbilla-Gladstone pipeline.
PL94 is also the closest production licence to the Gladstone market.

Interest holders in the Mungi Prospect are Oil Company of Australia
(Moura) Pty Ltd (50% and operator), Molopo Australia NL (25%) and
Helm Energy-Australia, LLC (25%).

S Mitchell
MANAGING DIRECTOR