CALGARY, ALBERTA--(Marketwire - Jan. 30, 2013) - Molopo Energy Limited (ASX:MPO)
- Corporate production averaged 917 barrels of oil equivalent per day (boe/d) during the Quarter, 124% higher than the 409 boe/d produced in the prior quarter. Production was comprised of 65% oil and natural gas liquids (NGLs) and 35% natural gas;
- Announced preliminary and 30 day results from Baggett 54-1H, the first Bench B well drilled in Fiesta, which were consistent with the two Bench A wells previously drilled in the area;
- Divested its interest in the Queensland natural gas assets on 1 November for gross proceeds of AUD$41 million plus a AUD$2.4 million adjustment for working capital;
- Continued to maintain a very strong balance sheet with an estimated US$71 million in cash at the end of the Quarter, which will significantly contribute to the execution of Molopo's go forward strategy; and
- Subsequent to the end of the quarter, announced the appointment of Mr. Steven Cloutier as Chief Executive Officer and Managing Director effective 17 January 2013.
Update for Second Quarter Ended 31 December 2012 and January 2013 Monthly Update
Molopo invested all US$22.3 million of its capital program during the Quarter to drilling and completing the final 2 wells of its 2012 program in the Wolfcamp formation in West Texas, as well as some additional completion costs from wells drilled in the prior Quarter. The first Bench B well in Fiesta, Baggett 54-1H, was drilled and completed through October and November, with results announced in December that were consistent with earlier Bench A wells drilled. The sixth and final well in the 2012 program, Linthicum Washington 24-2H in Barnhart, was drilled and completed through November and December and commenced flow-back on 30 December 2012. Since coming on production, 24-2H achieved a peak 24 hour rate of 456 boe/d comprised of 45% oil & NGL's, and 55% natural gas.
For the month of December, production was 931 boe/d, weighted approximately 63% to light, sweet crude oil and liquids, and 37% to natural gas, with Texas contributing 87% and Saskatchewan contributing the balance. Molopo's average production through the Quarter of 917 boe/d was comprised of approximately 65% light, sweet crude oil and liquids, and 35% natural gas, with Texas contributing 85% and the balance from Saskatchewan.
Molopo is currently focused on developing a capital budget for 2013 which builds on all the asset development knowledge gained in 2012. This is expected to be finalized, approved and communicated to shareholders within the first quarter.
On 1 November 2012 Molopo closed its previously announced sale of its Queensland asset for gross proceeds of AUD$41 million plus a AUD$2.4 million working capital adjustment. At the end of the Quarter, Molopo's cash balance was approximately US$71 million, and the Company has no debt.
In order to position Molopo more favorably in North American operating and financial markets, the Company's financial year end was changed to 31 December from 30 June, and its presentational currency was changed from Australian to US dollars effective 1 July 2012. As a result of the change to year end, Molopo will report stub year financial statements for the 6 month period from 30 June to 31 December 2012, and report its full year results as at each 31 December year end thereafter. Molopo's 2013 Annual General Meeting (AGM) will be held on 23 May 2013.
With the view to delivering a strategy of maximizing the return to shareholders from the Company's current assets, the Board of Directors appointed Mr. Steven Cloutier as Chief Executive Officer and Managing Director of Molopo subsequent to the end of the Quarter, succeeding Mr. Tim Granger. In concert with a special Board committee, Mr. Cloutier is working to develop and implement a renewed approach to executing on the organization's North American strategy, including a capital budget for 2013.
|QUARTERLY FINANCIAL & PRODUCTION SUMMARY
|Figures are Molopo net in US dollars (accruals basis)
||Three Months Ended 31 Dec '12
||Three Months Ended 30 Sep '12
|Exploration & development expenditure incurred1($'000)
|Sales Volume (Boe)
||Sales proceeds is the gross amount from production before royalties and operating costs.
To access the Appendix 5B, please visit the ASX Announcements page of Molopo's website at www.molopo.com.au.
JANUARY OPERATIONAL UPDATE
No new drilling activity was undertaken through the month. Until Molopo has confirmed and communicated its 2013 budget, operational activities will be limited to maintaining existing wells with a view to optimizing production.
Molopo will provide future operational updates on its development activities on a quarterly basis or as circumstances warrant, in accordance with ASX policies.
|About Molopo Energy Limited
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. Supported by a strong balance sheet, the Company has been 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 Saskatchewan, Canada; an onshore gas project in South Africa, and a shale gas asset in Quebec, Canada.
||Molopo Energy Snapshot
ASX Code: MPO
Share Price1: AUD$0.33
Market Cap1: AUD$81MM
Net Cash2: US$71MM
1. Market figures as at 30 January 2013
2. Balance sheet amounts as at 31 December 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.