Molopo Energy Limited (ASX:MPO) is pleased to announce that a production right
has been awarded to Molopo South Africa Exploration ("Molopo SA") over an area
of approximately 200,000 hectares in the Free State province.


This is the first onshore production right to be awarded in South Africa, and
commenting on the award, Molopo Manager for South Africa Mr. Peter Price said,
"We are very pleased to have secured this first onshore production right, which
represents an exciting development for both South Africa and for Molopo. We and
our Black Economic Empowerment ("BEE") partners are looking forward to
contributing to the enhancement of the local community."


An estimate of Molopo SA's reserves and resources in the Virginia License area
was performed during the exploration phase in 2010. At that time, the P1
reserves were estimated at approximately 9.2 Bcf and P2 reserves of
approximately 23.0 Bcf, and the production right application was based on this
exploration work(1). Molopo's overall net interest in the project is 80% after
BEE and government participation.


The initial phase of development of this project will be the tie-in of 4 of the
11 pilot production wells where gas flow of approximately 1.2 mmcf/d continues.
Commercialisation of initial volumes of approx. 600 mcf/d of natural gas is
anticipated to be through the provision of Compressed Natural Gas for
transportation. The timing and detailed scope of these development plans will be
finalised over the coming months. However, the capital investment outlined in
the production right is approximately A$2.4 million in the first year, A$3.9
million in the second year, and A$8.6 million in the third year; totalling
A$14.9 million over the three year period. 


In the longer term, the full field development could result in the development
of more than 200 wells, depending on success in further delineation of the
resource as well as progress on gas commercialisation opportunities. 


(1)These reserves were independently certified by Tim Hower of MHA Petroleum
Consultants, LLC, Denver USA who has consented to the inclusion of the reserves
information in the form and context in which it appears.


Molopo SA has committed to the implementation of a social and labour plan to be
reviewed after two years to ensure that it remains in line with local economic
development program developed for the region. Molopo will continue to contribute
to the Upstream Training Trust to assist with the development of local skills to
the benefit of the onshore gas industry. Molopo SA was assisted by Bowman
Gilfillan in the preparation of the production right application.


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.


To view the map associated with this release, click the following link:
http://media3.marketwire.com/docs/mpo_map.jpg


Issued by: Molopo Energy Limited

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.
Bee Vectoring Technologies (TSXV:BEE)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Bee Vectoring Technologies Charts.
Bee Vectoring Technologies (TSXV:BEE)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Bee Vectoring Technologies Charts.