Molopo Energy Limited

August 29, 2012 20:29 ET

Molopo Energy Limited: Profit Guidance For Full Year Ended 30 June 2012

CALGARY, ALBERTA--(Marketwire - Aug. 29, 2012) - As a preliminary indication, Molopo (ASX:MPO) estimates that its unaudited accounting loss after tax for the financial year ending 30 June 2012 will be in the range of $58 - $63 million, due largely to the two non-cash impairment charges against the Company's Queensland and Saskatchewan assets. This compares to a profit after tax for the financial year ended 30 June 2011 of $84.4 million, which included a before tax gain from the sale of the Company's Spearfish assets. The before tax impairment charges are estimated as follows:

  • Approximately $23 million related to the sale of the Company's Queensland assets, which was announced on 1 August 2012.
  • Between $35-40 million which has arisen as a result of the preliminary review conducted by the Company at each reporting date of the carrying amount of its non-financial assets to determine whether there is an impairment. This charge relates to the Company's Saskatchewan assets, which had a carrying value of approximately $56 million.

Given the previously announced drilling results in the Bakken zone of Molopo's Saskatchewan assets, the Company has determined that it is prudent to write off the unsuccessful exploration expenditure and reduce the carrying value on this asset.

The above estimates are subject to adjustment as the normal year-end process to complete the audited financial statements continues to progress. The Company expects to release its audited financial statements on or around 10 September 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 ASX-listed oil and gas exploration and production company. The company is focussed on the development of its shale oil resource play in the Permian Basin, Texas, USA. The company also has unconventional oil assets in the Williston Basin, Saskatchewan, Canada, shale gas assets in Quebec, Canada, a CBM project in Australia (under divestment) and onshore gas projects in South Africa.

Contact Information

  • Molopo Energy Limited
    Cindy Gray
    VP Capital Markets
    +1 403 648 8026

    Molopo Energy Limited
    Joanna Hughes
    Investor Relations
    +61 3 9618 8704

    Registered Office
    Level 14, 31 Queen Street, Melbourne, Vic. 3000, Australia
    GPO Box 223, Melbourne, Vic. 3001, Australia
    (61 3) 9618 8705
    (61 3) 9620 2804 (FAX)