MPO 0.00% 14.0¢ molopo energy limited

results pending

  1. 782 Posts.
    Production testing results recently announced demonstrate the likelihood of a commercial development of the Mungi project in the Bowen Basin. Molopo has additional, potentially analogous, projects in the Bowen Basin. Development of the coalbed methane resources here could lead to long term gas supply contracts, either in conjunction with leading Australian coalbed methane operator, Oil Company of Australia, or independently.
    These project areas have the potential to deliver a significant gas project into the growing coalbed methane industry in Queensland.

    Molopo is in partnership with Oil Company of Austalia (OCA), the leading coalbed methane (CBM) operator in Australia, in the Bowen Basin, the most productive CBM basin in Australia.
    The Mungi and Harcourt project areas in the Bowen Basin have been undergoing a focused appraisal programme for 12 months that is likely to lead to at least one commercial development in 2003.
    *The potential recoverable gas in Mungi and Harcourt is some 160 petajoules and 70 petajoules (PJ) respectively.
    *Farmout deal negotiated by Molopo with Helm Energy LLC will cover a significant portion of Molopo¡¦s exploration, appraisal and development costs over the next two years. This is likely to allow participation in the Mungi development without any cash outlay.
    *Mungi-4 production has peaked at 1 million cubic feet of gas per day (cfpd). We estimate that if production of development wells can be maintained above 200,000 cfpd, then the threshold for commercial development will be met.
    *Molopo is also investigating new production techniques involving horizontal drainage wells connected to vertical pump wells that, if successful, are likely to significantly improve the production economics.
    *Molopo has signed a gas sales contract to take the current production test gas, which could be extended to take higher volumes in the future.
    *The Liulin project in China is also undergoing appraisal and could develop into a significant gas project over the next five years in conjunction with a new partner.
    *Molopo has an additional CBM appraisal project in the Gloucester Basin, and an exploratory project in the Clarence Moreton Basin, both in NSW.
    *We have estimated an indicative risked value of Molopos coalbed methane assets of $32.8 million.
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