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CALGARY, ALBERTA -- (Marketwire) -- 01/30/13 -- Molopo Energy Limited (ASX: MPO)
Highlights
-- 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
OPERATIONS
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.
CORPORATE
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.
