Molopo does not anticipate allocating significant development capital during 2013 to its other operating areas. In that regard, the Company's plans are as follows:
-- By way of joint venture, farm-out or sale, Molopo will be actively seeking the disposition of all or a portion of its lands at Weyburn, Estevan, Torquay, Taylorton, Macoun and Steelman in South East Saskatchewan, Canada (approximately 47,000 net undeveloped acres prospective for oil in the Midale formation), and at Virginia and Evander in the Republic of South Africa (approximately 900,000 net undeveloped acres prospective for gas).-- In Quebec, Canada (1.4 million acres in the St. Lawrence Lowlands Utica Shale), the Company will not be required to spend any capital until a moratorium on fraccing is lifted by the provincial government. Accordingly, Molopo intends to retain its interests until further notice.
Given the foregoing activity level, the Company expects its 2013 production to average 700-750 barrels of oil equivalent ("boe") per day, comprised 30% of crude oil, 25% of natural gas liquids and 45% of natural gas (exit 2012 production was approximately 950 boe/d). This estimate does not take into account any of the business development processes listed above; but does assume that Molopo will drill one Wolfcamp well at Barnhart during the fourth quarter, as outlined above (with no impact on 2013 average production rates).
In conjunction with execution of the capital budget and consistent with the over-all goal of cash preservation, Molopo will be undertaking an initiative to reduce general and administrative expenses.
Deployment of Remaining Cash Resources
Molopo's cash resources represent a significant asset that Molopo is committed to allocating prudently. Pending the outcome of the above-noted initiatives, the cash could be considered for provision to Molopo's share of joint venture drilling in the Wolfcamp (if any); potential distribution to shareholders (in an amount and at a time yet to be determined); a share buy-back; or a combination of the foregoing. At this time, it is not anticipated that any capital will be deployed into acquisitions.
Conference Call
Steve Cloutier, Managing Director and Chief Executive Officer, will host a conference call to discuss the 2013 budget and outlook on April 9 (Australia) / April 8 (North America). The call will be open to analysts, investors, and all interested parties. Details to access the call follow:
Location Date Time Access Details----------------------------------------------------------------------------Australia/ Tues 9 9:30am EST / 0011-800-2787-2090 Toll free New April 2013 7:30am WST Zealand----------------------------------------------------------------------------North Mon 8 7:30pm ET / 1-877-440-9795 Toll free America April 2013 5:30pm MT +1 (416) 340-8530 Toronto local / International Dial-In----------------------------------------------------------------------------Internet access - live and recorded http://www.gowebcasting.com/4245 webcast (available until Apr. 8, 2014)----------------------------------------------------------------------------
Participants in the U.K and most European countries may access the call by dialing 00-800-2787-2090.
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.
Contacts:
Molopo Energy Limited
Steve Cloutier
CEO
Canada: +1.403.264-7778 or Australia: +(61 3) 9618 8722
Molopo Energy Limited
Cindy Gray
VP Capital Markets
Canada: +1.403.264-7778 or Australia: +(61 3) 9618 8722
investorrelations@molopoenergy.com
www.molopo.com.au
Molopo Energy Limited - Registered Office
c/- First Advisers Pty Ltd
Suite 604, Level 6, 309 Kent Street Sydney,
NSW 2000 Australia
P.O. Box H206, Australia Square NSW 1215
Telephone: (61 3) 9618 8722 / Facsimile: (61 2) 8011 0359
