Molopo Energy Limited

Molopo Energy Limited

October 31, 2012 23:54 ET

Molopo Announces Closing of Queensland Asset Sale

CALGARY, ALBERTA--(Marketwire - Nov. 1, 2012) - Molopo Energy Limited (ASX:MPO) is pleased to confirm that the previously announced sale of its Queensland Bowen Basin coal bed methane assets to a wholly-owned subsidiary of PetroChina International Investment Company Limited has successfully closed. Upon closing, Molopo received total proceeds of A$41 million plus a working capital adjustment of A$2.4 million.

The proceeds from this sale contribute to Molopo's cash balances and strategy to focus on continued drilling and development of its Wolfcamp oil acreage, situated in the Permian Basin in Texas, USA.

For further details on the transaction please see Molopo's press release dated August 1st, 2012.

This press release contains certain forward-looking statements. These statements relate to future events or future performance of the Company. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to certain events, and are subject to a number of risks, uncertainties and assumptions. Many factors could cause Molopo's actual results, performance, or achievements to materially differ from those described in this press release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in other public disclosures made by the Company or this press release as intended, planned, anticipated, believed, estimated, or expected. Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be produced profitably in the future. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary declaration. These statements speak only as of the date of this press release. The Company does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

Molopo Energy Limited is an oil and gas exploration and production company listed on ASX under code 'MPO', with management based in Calgary, Alberta, Canada. With a strong balance sheet, the Company is predominantly focused on the development of its Wolfcamp shale oil resource play in the Permian Basin, Texas, USA. In addition, Molopo also has oil assets in the Williston Basin, Saskatchewan, Canada; shale gas assets in Quebec, Canada; and onshore gas projects in South Africa.

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