Wilson HTM have increased their price target on MPO to $3.50 based on increased gas prices etc
Printable View
Wilson HTM have increased their price target on MPO to $3.50 based on increased gas prices etc
...up 20.5 today on news of successful multi-lateral coal seam gas trial well drilling outcome;
...seems like a new drilling technique is being established
Kind Regards
Very interesting annoucement today. Very good flow rate although probably to be balanced against the higher capital costs of the horizontal wells.
MPO is well funded after selling their interest in the Gloucester CSG for $111m although probably some tax to pay on that. Current market cap is around $170m.
Mungi is also close to Gladstone.
I have never held MPO but it looks tempting.
Am currently looking at entering MPO as it looks cashed up with some large CSG target under the drill any sharetraders hold or also looking to buy them cheap..
latest news-
MEDIA RELEASE 20th August, 2009
MOLOPO DELIVERS SECOND 1 MMSCF/D FLOWING WELL FROM MUNGI HORIZONTAL DEVELOPMENT TRIAL
• Milestone Interim rate of 1 MMscf/d achieved on Mungi-20V from 5300m lined coal with production rates climbing
• This follows Mungi-20A’s peak rate of 1.1 MMscf/d from 2800m lined coal
• Mungi-21 drilling underway targeting 7000m lined coal
• Mungi-23 planning in progress targeting 10,000m lined coal
• Reserves upgrades will be sought for end 2009
• Reserves targets of 2P 200 Bscf and 3P 500 Bscf established for end 2010
Molopo’s joint venture partners are Anglo (25.5%) and Mitsui (24.5%).(good partners to be involved with takeover predators in time??)
-189mill market cap
-109mill cash no dept
-International portfilo of major Energy assets with large upside in reserves 3p 500bcf before 2011
-30% shares held by top 20
-cashflows only just start to grow
-long term looks a great Energy investment with $5+ potential longer term
-Molopo is well positioned financially, technically and from a portfolio perspective to
continue it’s transition into a major developer and producer
-Phaedrus be great to see your T/A magic on this one
-Bermuda,SC,shasta,Doc,tricha etc whats the views on MPO
JBmurc holding MPO $1ps
JB the problem is extracting the value from their canadian assets.
How and when are they goign to do this.
Find that out and you'll get a better idea on value.
Their Aussie assets have poor flow rates, same problem as MEL
--latest news-
Milestone Interim rate of 1 MMscf/d achieved on Mungi-20V from 5300m lined coal with production rates climbing
I was aways in the belief that CSG wasn't a high production form of gas ,an you need to drill many wells to release a decent overall flow from a seam,MPO are currently drilling more so they could well have 3-5 wells at 1MMcf p/d or 3-5MMcfpd not that bad flow of gas from CSG
MPO has been trapped in a trading range, going nowhere for many months. There is clear Resistance at $1.27 and clear Support at $0.97. Look though, at the OBV over the last 6 months. While the shareprice is unchanged at around $1, the OBV has risen. MPO is being accumulated.
JBmurch is looking to buy - I would suggest use of an indicator such as the Stochastic Oscillator shown here. Right now MPO is technically "OverSold", but this does not signal a "Buy" until the oscillator rises above the OverSold threshold. Evidence that the Support still holds would similarly signal a Buy. Technically this would be classed as a "low risk" entry because of the immediate proximity to historical support. A Close of below the support level should trigger a stop-loss and signal an immediate exit.
http://h1.ripway.com/78963/MPO824.gif
Looks kind of similar to PRC at the moment - rising OBV and not much movement in SP. I'm really starting to regret the opportunity cost of that one!
Have been clearing out some other deadwood in the last week to free up cash for better opportunities - but scared to get out of PRC at this point, since I don't think there is a clear sell signal.
Hopefully won't make the same mistakes again on entry once I get better at reading charts!
Thanks for all your charts and commentaries Phaedrus - extremely helpful for us novices!
got this off SS sort of backs up my view to buy MPO with latest of 1MMscf p/d flow
I am going to be very very intereted to see how BOW's well's do flow once they actually do production testing. The whole area of flow rates has had me trawling through CSG company announcements of all sorts for the last hour or so. From what I can see, a flow rate over 1MMscf/d is a very good well. I know back in the good old days when I had some QGC shares, they had some very good flow rates often above this level. Even Gloucester had flow rates approaching this area, but most peaked around 750Mscf/d I think.
Thanks Phaedrus happy to have brought at $1 a drop below 95c I'll be out might take a few monthe before MPO take am major upside direction still believe when it does it will have been worth waiting for.
MPO up 10% today nicely throught it's 75 EMA strong break from the recent trend buyers see good value...
Looks like you arent the only one on this.
I got a special email with research from one broker to BUY MPO.
--Aussie-
The Company is now targeting 2P and 3P reserves
of 200 billion standard cubic feet (Bscf) and 500
Bscf respectively by the end of next year. Recent
acquisition transactions in Queensland have
averaged $2million per Bscf for 2P and $0.7 million
per Bscf for 3P, implying a valuation of $1.90-2.18
per share for the company reserves target range.
--Canada--
The most recent Quebec farm-in deal transaction metrics imply a value to share holders of $1.00 per share for Molopo’s core acreage position(this is only less than 20% of their land holding in canada)
--South Africa--
Pilot wells continue to perform strongly with total flow still at approximately 1 MMscf/d.
While market valuations are difficult to establish in South Africa, gas prices in the country are expected to trade in a range between those in North America and our Australian prices. Molopo currently has certified reserves of 36Bscf at 2P and 112 Bscf at 3P.
--Anybody what to make some money?? Safe CSG Play here
broker comments
*We remain bullish on energy given increasing world demand driven by asia and see lng as the most appropriate investment opportunity given probability of a doubling of demand for gas.
*The sector has rallied hard over the past month however molopo appears to have been left behind.
*Mpo has csm interests near gladstone in bowen basin, northern nsw, south africa, china and shale gas interests in canada.
*Market cap circa 200m
*12m range 0.41-2.09
*109m net cash after gloucester basin asset sale late 2008
*349 pj 3p , 231 of which is in QLDs bowen basin *Trades on 23c/gj of 3p ex cash vs AOE on 65c/GJ and recent transactions ranging from 70c-1.60/GJ *ev/3p boe of 1.28 *1600 contingent resource and total prospective resource circa 7tcf *Conversion from prospective into contingent resource and 3P reserves by a factor of 4 times in each of last 2 years,.
*Catalysts are more drilling and proving up of 3p in bowen, south africa and china *Asset sales and farm ins to realise value gap.
*Further production milestones in east coast csm and south africa producing valuable cashflow.
*Management bolstered by recent hires of ex bhp csm boss Ian Gormon as executive director and COO and gs energy analyst Anthony Bishop as CFO.
*This stock is trading too cheap for its current asset value and drilling upside.
*We would not be surprised to see a major in the QLD CSM game such AOE/Shell, ORG/Conoco, AGK or STO/Petronas have a look at MPO not to mention it s JV partners Anglo or Mitsui.
28 August 2009 MPO SECURES SITE FOR POWER STATION IN MOURA, QUEENSLAND
Molopo Australia Limited, through its subsidiary company Molopo Generation Pty Ltd, has signed option agreements with various parties which will allow the Company to acquire a site in Moura for its gas-fired power generation project (“the Project”), based on its coal bed methane (“CBM”) interests in Mungi (PL 94 northern sub-lease), Bowen Basin, Queensland.
The option agreements are conditional on Molopo being granted an exemption under the Land Sales Act 1984 (Queensland) to enable a separate title for the preferred site to be created. Once this requirement is met, Molopo will initiate the final stages of the Project’s feasibility study. Signing of the option agreements demonstrates Molopo’s commitment to commercialising its Bowen Basin CBM interests, and follows the favourable results to date of a feasibility study in relation to the Project, combined with the performance of the Mungi multi-lateral wells as announced in earlier releases. The Company plans to exercise its option over the preferred site after completing the final stages of the Project’s feasibility study, granting of development approvals and board approval to proceed with development. The Project is expected to be operational by mid-2011. It will supply electricity into the National Electricity Market (“NEM”) via the existing electricity network. Its greenhouse emissions will be approximately 43% lower than those from black coal-fired power stations using existing technology. The project will be built in two stages, each of 30MW capacity, and will be financed with a combination of debt and equity. Molopo’s Managing Director, Stephen Mitchell, stated “Securing a site for our power project is a significant milestone for the Company, and is integral to the Company’s commercialisation strategy for its CBM interests in Queensland.” Chief Commercial Officer, Ric Sotelo, said “The Project will enable the Company to maximise the value of its CBM production by providing flexibility to switch from base load operation to peak load, should it be more profitable to sell gas directly during off-peak periods. It is anticipated that the Project will be a market generator, thereby ensuring access to the NEM with exposure to potential upside in electricity pool prices. The vertically integrated nature of the Project combined with its on-field location, will ensure that its marginal cost will be competitive against coal-fired generation, particularly following the introduction of the Carbon Pollution Reduction Scheme.” Moura is located in inland central Queensland, which has a substantial electricity load based on coal mining operations in the Bowen Basin and Queensland Rail’s transport network.
The final stages of the Project’s feasibility study will include finalising key project agreements, obtaining approvals from government agencies and securing financing. During its construction phase, the Project is likely to employ around 30 people. In a separate initiative, Molopo commenced this week a pre-feasibility study for a power generation project based on gas from Harcourt South. At this stage, the parameters for the study envisage a capacity of 100MW. This project will also produce 43% lower greenhouse emissions when compared to black coal-fired power stations using existing technology, equivalent to 170,000 tonnes CO2-equivalent per annum.
Is this the start or range bound. Still holding and pondering.
Chart are still uptrending. Good timing JB.
-Yeah thanks mate hoping to see penalty more growth to come at this stage T/A wise MPO are still in a 98c-127c trading range it's been in since Feb-
I really think we'll see MPO break through the 127 resistance point soon with Gas in Aus getting some major attention
US gas also has become far to undervalued by the market an should rebound higher.
...mpo in trading halt pending announcement; fund raising seems unlikely after they sold part of their assets;
...actually, after trading a lot in mpo, I never, even in the crash, sold down my core holding and I would thoroughly enjoy a take-over bit now
...anyone knows something through the grapevine???
Kind Regards
Looks like they're acquiring something?
'Material acquisitions?'
MOLOPO TO ACQUIRE OIL ASSETS IN CANADA
Molopo Australia Ltd (“Molopo”) is pleased to announce that it has executed conditional agreements to acquire a private Canadian company with assets targeting the Spearfish oil play (“the Spearfish Company”) and, in a separate transaction, 66 sections (approximately 42,000 acres) of land targeting the Bakken oil play (“the Bakken Company”), both located in Canada. The total acquisition price for the two transactions is C$27.4m and is to be funded by the issue of Molopo shares with a value of C$10.2m and C$17.2m in cash
“The acquisitions are a natural progression for Molopo as they give us scope to leverage the knowledge we have of horizontal drilling in tight reservoirs by applying it to an area that can immediately generate material cash flows. We believe the two assets combined could have approximately 25-30 Million barrels (MMstb) of recoverable oil (net to Molopo) with production targeted to reach 400-500 bbls/d (net to Molopo) by September next year”
Production Potential (Molopo’s share) -End 2012 total=3500bbl per day
-End 2014 total=8,000bbl per day
very nice IMHO incresing their Canada focus
The Bakken Formation in Canada contains additional resources and has been called one of the largest oil fields in Canada
Throughout history, most of the great oil and gas fields have been discovered. This one will be unlocked through innovation.
Just a few years ago the Bakken was considered a marginal to submarginal resource because the oil and gas are locked in a rock formation with a low permeability. However, advances in drilling and recovery technology such as horizontal drilling and hydrofracturing have transformed it into a viable resource
I am out. Tough exit since I had a target in the $1.20's.
I'm hoping It will keep round the low 110's for awhile like to buy another 100,000 market is very short sighted atm this time next year MPO will be over $2
-This discovery is close by to MPO massive Canadian acreage--
Questerre Energy Corporation is pleased to report on the Utica test results from the St. Edouard #1 well in the St. Lawrence Lowlands, Quebec.
The primary zone of interest within the middle Utica was fracture stimulated in late July. Over a 10-day test, the well flowed at initial rates of 2.6 mmcf/d with an average rate of over 700 mcf/d on a one-inch choke. The well is currently shut-in for buildup to gather additional pressure data
MPO to own power plants-
MOLOPO Australia has signed option agreements to secure a site in Moura, Queensland, for a gas-fired power generation project that will source gas from its coal seam gas assets in Mungi, Bowen Basin. The project is expected to be operational by MID-2011 and will supply electricity into the national electricity market through the existing electricity network. Molopo said the project will be built in two stages, each capable of producing 30 megawatts, and will be financed with a combination of debt and equity.
“The project will enable the company to maximise the value of its CBM (coalbed methane) production by providing flexibility to switch from base load operation to peak load, should it be more profitable to sell gas directly during off-peak periods,” Molopo chief commercial officer Ric Sotelo said. He added the vertically integrated nature of the project combined with its on-field location would ensure that its cost would be competitive against coal-fired plants.
The option agreements are conditional on Molopo being granted an exemption under the Land Sales Act 1984 (Queensland) to enable a separate title for the preferred site to be created. Meanwhile, Molopo has started a pre-feasibility study for a power generation project based on gas from Harcourt South.
This project is aimed at building a plant capable of producing 100MW of power.
METGASCO FIRES UP, BUYS OUT MOLOPO
After spending a long time under the radar compared with their coal-seam gas peers, Metgasco and Molopo Australia are starting to attract some buzz.
Metgasco on Friday said it had bought out Molopo to take full control of two permits in the Clareton-Moreton Basin on the NSW-Queensland border for $3 million in cash and $4 million in shares.
Molopo had previously flagged to its shareholders that it was likely to exit that area to focus on its Mungi field in Queensland, where it may choose to buy out its joint venture partner there, Anglo American, in a deal that could be worth about $50 million.
Molopo has also beefed up its presence in Canada through a recent $30 million acquisition of oilfields with tight reservoirs. Credit Suisse upgraded its target price by 30 cents to $1.60 after that deal was completed.
https://secure.wilsonhtm.com.au/rsea...PO20091030.pdf
Recommendation
MPO continues to progress its business plan, divesting non-core assets in
NSW and China, expanding its Canadian presence by acquiring shale oil
production and initiating planning for power generation at its Mungi CSG
project in Queensland. The expanded Canadian presence, with near term
oil production and long term gas upside, offers the potential for business
restructuring to better reflect the value of the North American assets.
MPO’s evolution from explorer to producer is advancing well and should
lead to wider investor appeal. We retain our Buy recommendation and
have revised our price target to $A2.40 /sh (previously $2.15)
respect to you JB! mpo up nearly 20% this week. something brewing?
From Getagraph
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Friday 13 Nov. 2009]:
(Autocomments)
MOLOPO AUSTRALIA LIMITED is up by 4.73% yesterday from AUD 1.48 to AUD 1.55 , and has now gained 5 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 7 out of 10 days, and is up by 14.81% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 0,04 million more shares than the day before. In total there were bought and sold 1,69 million shares for approx. AUD 2,61 million.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays the middle of a very wide and strong rising trend on short term and further rise within the trend is signalized. Given the current short term trend the stock is expected to rise 25.2% during the next 3 months and with 90% probability hold a price between AUD 1.58 and AUD 2.08 at the end of this period.
Support/Resistance
Support 1: AUD 1.45 Resistance 1: AUD N/A
Support 2: AUD 1.30 Resistance 2: AUD N/A
Support 3: AUD 1.20 Resistance 3: AUD N/A
My additional comments:
It was really pleasing to see the strength of the buying that continued today. The weekly chart must look fantastic with the stock rising 19.5c for the week. No resistance points remain and the very bullish re-rating of the stock that has got underway seems destined to continue for some time. I also note that the expected trading range has started to increase as would be expected.
yeah much talk on MPO doing a listing on the TSX etc as S/h believe it would be valued well north of current prices with what prime Canadian assets MPO hold ASX'er not really understanding values etc has been getting good attention of late an to think it was doing nothing hanging round $1 not long back.....
I holding till I have to sell most likely north of $2
judging by this mornings play you may want to revise that JB!
From Getagraph
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Monday 16 Nov. 2009]:
MOLOPO AUSTRALIA LIMITED is up by 2.58% yesterday from AUD 1.55 to AUD 1.59 , and has now gained 6 days in a row. It is not often stocks manage to gain so many days in a row, and a day or two with fall should be expected. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 8 out of 10 days, and is up by 22.31% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 0,35 million more shares than the day before. In total there were bought and sold 2,04 million shares for approx. AUD 3,25 million.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays in the upper part of a very wide and strong rising trend on short term, and this will normally pose a very good selling opportunity for the short term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trendline at AUD 1.67 will in first place indicate a stronger raising rate. Given the current short term trend the stock is expected to rise 25.8% during the next 3 months and with 90% probability hold a price between AUD 1.60 and AUD 2.10 at the end of this period.
Support/Resistance |s
Support 1: AUD 1.45 Resistance 1: AUD N/A
Support 2: AUD 1.30 Resistance 2: AUD N/A
Support 3: AUD 1.20 Resistance 3: AUD N/A
From Getagraph:
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Tuesday 17 Nov. 2009]:
MOLOPO AUSTRALIA LIMITED fell by -3.77% last day from AUD 1.59 to AUD 1.53. . In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 7 out of 10 days, and is up by 14.18% over the past 2 weeks. Volume fell last day along with the stock which actually is a good sign as volume should follow the stock. Last day the tradingvolume fell by -0,78 million shares and in total there was bought and sold 1,26 million shares for approx. AUD 1,92 million.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays the middle of a very wide and strong rising trend on short term and further rise within the trend is signalized. Given the current short term trend the stock is expected to rise 25.7% during the next 3 months and with 90% probability hold a price between AUD 1.61 and AUD 2.11 at the end of this period.
Support/Resistance
Support 1: AUD 1.45 Resistance 1: AUD 1.56
Support 2: AUD 1.30 Resistance 2: AUD 1.60
Support 3: AUD 1.20 Resistance 3: AUD N/A
I did not post yesterday's comments as they were fairly much a repeat of the day before, and did not want to bore anyone.
However with the change in direction today, I think that it is interesting to post tonight's commentary.
I think that we saw the bottom at 1.47 and that we are now heading north, and possibly very rapidly. I note the resistance pointed to by Getagraph and have also relayed to me a commentary from a noted chartist Regina Meani. She noted that if it broke $1.60 that MPO could head to $2.20, but if it failed to find support below, then it was possible to fall to $1. Apart from a couple of 100k parcels that were offered for sale this p.m. (which I think were loaded in to hold the stock back) there is not a lot of stock on offer below $1.60 (about 100k).
I am of the opinion that if we do not see major resistance early next week, that MPO will be testing new yearly highs before the week is finished. Time will tell.
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Friday 20 Nov. 2009]:
MOLOPO AUSTRALIA LIMITED is up by 3.33% yesterday from AUD 1.50 to AUD 1.55 In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 7 out of 10 days, and is up by 13.97% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 25 889 more shares than the day before. In total there were bought and sold 815 098 shares for approx. AUD 1,26 million.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays the middle of a very wide and strong rising trend on short term and further rise within the trend is signalized. Given the current short term trend the stock is expected to rise 24.6% during the next 3 months and with 90% probability hold a price between AUD 1.61 and AUD 2.11 at the end of this period.
Support/Resistance |s
Support 1: AUD 1.45 Resistance 1: AUD 1.56
Support 2: AUD 1.30 Resistance 2: AUD 1.60
Support 3: AUD 1.20 Resistance 3: AUD N/A
Appointment of Canadian CEO and valuation pts
From Pukin on another site (and I am sure that he will not mind me posting it here:
I am getting the feeling that MPO's Canadian play is starting to snowball pretty rapidly, and that is why the share price is showing such strength. With MPO clearly flagging it is pursuing a Canadian Listing, it is pretty clear that finally some serious consideration needs to be given to what the Canadian acreage is worth!
So just using MPO's AGM presentation and the figures from that:
Utica Shale - 375,000 net acres highly prospective x $500US per acre = $187.5m. That leaves approximately 1.8m of the acre out at this stage.
Oil plays - We are seeing deals go through that are 6 times the price that MPO paid for its acreage. MPO got spearfish at C$236/per acre with deals now at C$1300/acre. MPO got bakken at C$321 per acre with deals now at C$2000 per acre, with one at C$4000 per acre! MPO paid C$27.4m for both plays there, so six times that amount is $164.4m.
That gives a total of $351.9m, in a mixture of Canadian / US dollars. Since we are within 10% of parity with each, I haven't bothered converting to Aussie dollars.
With approximately 200m shares on issue, including unlisted, that makes Canada worth $1.76 per share on its own.
Add on Cash of $60m at this stage (after tax on Gloucester paid).
Add on $6m for sale of China.
Add on $7m for sale of NSW.
So Cash of $73m = $0.365 per share.
Mungi/Harcourt/QLD... this is an interesting one. If we assume only $1/GJ of 3P, then it is worth $231m based on current reserves. That IGNORES lilyvale reserves, that have not been proven under the new code. Note that I think it is ok to use a figuer of around $1/GJ as the reality is, reserve exploration is something that MPO has really not targetted of late, rather it has been proving up production. Also I would think that Lilyvale/Oakpark will be upgraded together with Mungi/Harcourt in the reserves upgrade due in the next few weeks.... the previous reserves for Lilyvale/Oakpark are 123PJ 2P and 279PJ 3P... so that will add some serious reserves to the equation. Also it must be remembered that effectively these tenements are pretty advanced given the production currently being extracted. Finally, the location is very very beneficial being so close to a pipeline.
Finally we have South Africa... well, it is treated as the poor cousin by the average joe investor, so we will say it is worth $20m in total, along the lines of NSW/China, but with a bit of a bonus seeing as it is flowing gas already at sustained rates.
Add it all together:
Canada: $350m
Cash: $73m
QLD: $231m (could be lots of upside there!).
South Africa: $20m
Total: $674m = roughly $3.37 assuming 200m shares on issue.
We are currently trading at $1.52... which is a 55% discount to that price.
I think a reasonable discount may be around 20-40%... which would give a price range of $2.02 to $2.70.
Should be pretty exciting for the next few months... Canadian Oil drilling kicking off, Canadian Gas drilling kicking off, a reserve upgrade imminent within a month, Mungi 21 due to be finished soon, further news on the planned power stations are all definates.
Add in speculatives like farm-outs for Canadian Gas (lets face it, we have a lot of acreage there, and 4 or 5 targets), Anglo sale of QLD assets one day (don't hold breath!), corporate action in the CSG sector, or neighbours results in Canada to ignite the Utica players again.
Am a very happy holder at the moment.
Cheers
Pukin
Yeah very good reply is the reason I brought up an haven't sold 1 shares since $1 as MPO has huge potential in value going forward $3 certainly not out of the question next year with their current operations setting the stage nicely
MOLOPO COMPLETES SALE OF INTEREST IN LIULIN, SHANXI
PROVINCE, CHINA
Further to our ASX release on 17 November, 2009 announcing that Molopo Energy
Limited had agreed to sell its non-operating interest in Liulin, Shanxi Province, China, to
Fortune Oil Plc (“Fortune Oil”) for US$6million, we are pleased to confirm settlement has
occurred in line with the original agreement.
Molopo held a 26.1% interest in Fortune Liulin Gas Company, Limited, the single
purpose company which holds a net 50% interest in the Liulin Block (after back-in by
China United Coalbed Methane Corporation, Limited).
Not much change from Friday's comments but we only have one resistance point being noted at $1.60, which is not that far away.
With the help of the amount traded in the closing auction we were able to have a slightly larger volume from that traded on Friday.
We seemed to have a reasonable degree of buying strength today that was offset from a couple of consistent profit takers. If the buying strength remains, those sellers will quickly disappear.
From Getagraph
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Monday 23 Nov. 2009]:
No changes to price of MOLOPO AUSTRALIA LIMITED last trading day. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 6 out of 10 days, and is up by 7.64% over the past 2 weeks.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays the middle of a very wide and strong rising trend on short term and further rise within the trend is signalized. Given the current short term trend the stock is expected to rise 24.2% during the next 3 months and with 90% probability hold a price between AUD 1.60 and AUD 2.10 at the end of this period.
Support/Resistance |s
Support 1: AUD 1.45 Resistance 1: AUD 1.60
Support 2: AUD 1.30 Resistance 2: AUD N/A
Support 3: AUD 1.20 Resistance 3: AUD N/A
MPO canada assets -
Total Mid case portfolio value is C$500 million with upside potential to exceed C$2500 million:)
MPO-300mill mrktcap
Molopo has spent 1½ years building a portfolio of high impact resource projects in Canada and is offering an opportunity to invest in a C$500 valued portfolio with upside value potential in the C$2500-3000 million range.Bakken Light Oil–70 net sections of well positioned land targeting over 200 MMbblsof oil in placeSpearfish Light Oil–86 net sections of land with 2P resource of 0.475 Mbblstargeting over 150 MMblsin place. Currrentproduction of 75 b/dQuebec Shale Gas–2.2 million acres, 4 identified prospect areas targeting over 6 Tcfof recoverable gas
it pulled back a touch from the 1.65 but I am not concerned.
According to Getagraph the previous resistance of 1.56 is now the support level.
The reference to 1.69 is still a few cents off but could easily surpass it on a good day, and that would indeed be a good indicator.
I note that in the after hours adjust that there is less than 470k on offer for sale and that more than half of that is at 1.70 or below. All the charts that I am looking at look very bullish.
I also suspect that we will see either some press coverage or analyst updates/commentary on the impact of today's announcement.
From Getagraph
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Tuesday 24 Nov. 2009]:
MOLOPO AUSTRALIA LIMITED is up by 4.52% yesterday from AUD 1.55 to AUD 1.62 In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 6 out of 10 days, and is up by 11.72% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 0,41 million more shares than the day before. In total there were bought and sold 1,32 million shares for approx. AUD 2,14 million.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays in the upper part of a very wide and strong rising trend on short term, and this will normally pose a very good selling opportunity for the short term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trendline at AUD 1.69 will in first place indicate a stronger raising rate. Given the current short term trend the stock is expected to rise 24.1% during the next 3 months and with 90% probability hold a price between AUD 1.61 and AUD 2.10 at the end of this period.
Support/Resistances
Support 1: AUD 1.56 Resistance 1: AUD N/A
Support 2: AUD 1.45 Resistance 2: AUD N/A
Support 3: AUD 1.30 Resistance 3: AUD N/A
"It certainly will be exciting to see if it manages to continue the gaining strike" and I am looking forward to seeing it happen.
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Wednesday 25 Nov. 2009]:
MOLOPO AUSTRALIA LIMITED is up by 1.85% yesterday from AUD 1.62 to AUD 1.65 , and has now gained 3 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 6 out of 10 days, and is up by 11.49% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 0,30 million more shares than the day before. In total there were bought and sold 1,62 million shares for approx. AUD 2,68 million.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays in the upper part of a very wide and strong rising trend on short term, and this will normally pose a very good selling opportunity for the short term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trendline at AUD 1.70 will in first place indicate a stronger raising rate. Given the current short term trend the stock is expected to rise 24.2% during the next 3 months and with 90% probability hold a price between AUD 1.61 and AUD 2.11 at the end of this period.
Support/Resistances
Support 1: AUD 1.56 Resistance 1: AUD N/A
Support 2: AUD 1.45 Resistance 2: AUD N/A
Support 3: AUD 1.30 Resistance 3: AUD N/A
This is not really what we want to hear at this stage of development, so hopefully any bidder is deterred by the Board.
I am hoping that the rumour of a bid for the Canadian assets is in fact a JV(farmout), that will prove the value of the assets ahead of the spinoff.
http://www.stockhouse.com/bullboards...0&s=QEC&t=LIST
MOLOPO to spin off Quebec's asset and JV
Alternative energy
Coalbed methane group Molopo Australiais meanwhile the subject of more rumours about its shale gas projectsin Canada. There's been talk mentioned in this column before aboutMolopo spinning off its Canadian interests into a Toronto-listedvehicle but now it’s rumoured that Molopo is in talks with a bidder. Anumber of companies are sniffing around the sector including Gazprom, the same Russian oil and gas giant that's interested in Mongolian coal. Last week Bloombergreported that Gazprom may be interested in acquiring a North Americanshale-gas company to gain expertise for its own shale-gas prospects inits own country. Norway's StatoilHydro made a similar move in May through the purchase of a stake in Chesapeake Energy Corporation, which has shale-gas projects in the northern Appalachian Basin.
The small retrace that we saw today was very positive in my view. It gave some an opportunity to buy before the stock resumes its climb.
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Thursday 26 Nov. 2009]:
MOLOPO AUSTRALIA LIMITED is up by -0.61% yesterday from AUD 1.62 to AUD 1.65 . In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 5 out of 10 days, and is up by 5.81% over the past 2 weeks. Volume fell last day along with the stock which actually is a good sign as volume should follow the stock. Last day the tradingvolume fell by -867 241 shares and in total there was bought and sold 755 741 shares for approx. AUD 1,25 million.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays in the upper part of a very wide and strong rising trend on short term, and this will normally pose a very good selling opportunity for the short term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trendline at AUD 1.70 will in first place indicate a stronger raising rate. Given the current short term trend the stock is expected to rise 24.2% during the next 3 months and with 90% probability hold a price between AUD 1.61 and AUD 2.11 at the end of this period.
Support/Resistances
Support 1: AUD 1.56 Resistance 1: AUD N/A
Support 2: AUD 1.45 Resistance 2: AUD N/A
Support 3: AUD 1.30 Resistance 3: AUD N/A
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Monday 30 Nov. 2009]:
MOLOPO AUSTRALIA LIMITED is up by 1.94% yesterday from AUD 1.55 to AUD 1.58 In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 5 out of 10 days, and is up by 3.27% over the past 2 weeks. Volume fell last day by -800 904 shares and in total there was bought and sold 658 898 shares for approx. AUD 1,04 million. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays the middle of a very wide and strong rising trend on short term and further rise within the trend is signalized. Given the current short term trend the stock is expected to rise 25.1% during the next 3 months and with 90% probability hold a price between AUD 1.66 and AUD 2.16 at the end of this period.
Support/Resistances
Support 1: AUD 1.56 Resistance 1: AUD 1.60
Support 2: AUD 1.45 Resistance 2: AUD 1.62
Support 3: AUD 1.30 Resistance 3: AUD 1.65
French oil major Total on Monday struck a deal to enter the U.S. shale-gas market for the first time with a $2.25 billion accord with Chesapeake Energy.
MPO could well be on the watchlist of a major as they have large prime Canadian CSG grounds as well as great aussie permits up 6.5c today to 146.5c
Hey FC, are you using a Pivot Point calculator to get those figures????
Or are you manually drawing lines on your charting platform, and if so, which platform do you use???
Cheers
drillfix, it is from getagraph.com
new presentation on website
http://www.molopo.com.au/presentation_feb_2010.pdf
Also
I read on Baillieu's Daily report that Mitchell and Bishop are presenting in Syd. tomorrow.
My understanding is that the presentation is to institutions.
Any buying support coming from that meeting could be the trigger to take the share price to the next level.
help!!!!!! im hating this new format. how do i search for old threads. cant find cxs, cfe. tried to search, nothing.
Evil One
If you go onto the ASX thread & search through pages 1 - 5, the most recent threads should be there, i've had problems using the search function myself, very frustrating. The last ST upgrade was a great move, i don't like this at all!
Heres the link to the CFE thread
http://www.sharetrader.co.nz/showthr...-return/page24
Link to CXS thread
http://www.sharetrader.co.nz/showthr...x-(CXS)/page21
thanks fellas. was wondering if it was just me. shasta, you will be enjoying the phoenix. percy, you made me laugh out loud. anyone figured out why ice dancing/skating is in the olympics?
Questerre - 12mmcf/d initial rate from Utica - current rate 5mmcf/d
should get them going over there !
February 23, 2010 - Utica well tests at 12 MMcf/d
Calgary, Alberta -- Questerre Energy Corporation("Questerre" or the "Company") (TSX,OSE:QEC) ispleased to report on the test results from the St.Edouard No. 1A horizontal well in the St. LawrenceLowlands, Quebec.The horizontal well was successfully completed with 8stage fracture stimulations. Clean-up and flow backcommenced January 29, 2010. Initial rates were over 12MMcf/d. During the test, the well flowed natural gasat an average rate of over 6 MMcf/d.The well is currently still flowing on an extendedproduction test. The current rate is approximately 5MMcf/d at a flowing tubing pressure of 4412 kPa (640psi) with a choke size of 5/8 inch.Michael Binnion, President and Chief Executive Officerof Questerre, commented, "This first horizontal resultis simply excellent!"During the completion, microseismic data was gatheredusing the St. Edouard No. 1 vertical well as amonitoring well. Preliminary analysis indicates thefracs were successful in stimulating sufficient rockvolume in the entire Utica sequence.Mr. Binnion added, "The initial rates from St. Edouardexceed our internal threshold for commercialproduction on a per well basis based on targeteddevelopment costs."The Company and the operator are evaluating pipelineoptions to tie-in the St. Edouard location.Questerre Energy Corporation is an independent energycompany focused on shale gas in North America. TheCompany is concentrated on establishing commercialityof its Utica shale gas discovery in the St. LawrenceLowlands, Quebec.For further information, please contact:Questerre Energy CorporationAnela Dido, Investor Relations(403) 777-1185 | (403) 777-1578 (FAX) |Email:info@questerre.com
Molopo Pre-empts Anglo’s Queensland Gas Asset Sale
Molopo has informed Anglo Coal (Dawson) Limited (“Anglo”) that it will exercise its preemptive
rights in relation to the proposed sale to Westside Corporation Limited of Anglo’s
interests in the ATP564P joint venture. The ATP564P joint venture includes PL94 (north,
containing the Mungi gas field), PLA210 (containing the Harcourt Gas Field) and PLA296
(containing the Lilyvale/Oak Park prospects). Molopo has also elected to exercise 50% of its
pre-emptive rights in relation to the sale of Anglo’s interests in the ATP602P joint venture
(containing the Timmy prospect).
The ultimate cost to Molopo of exercising these pre-emptive rights will vary depending on
whether Mitsui Moura Investment Pty Ltd (“Mitsui”) also exercises its pre-emptive rights in
the joint venture. The minimum pre-emptive payment by Molopo, should Mitsui also preempt,
would be $7 million taking Molopo’s interests in ATP564P from 50% to 67.1% and its
interests in ATP602P from 50% to 62.9%. Should Mitsui decide not to pre-empt, Molopo
would be required to pay a total of $12 million to take its stake in both permits from 50% to
75.5%.
Molopo’s Managing Director, Stephen Mitchell commented: “The acquisition of additional
equity in the Queensland gas assets allows Molopo to take a majority position in the joint
venture and to exercise greater control of future work programmes and potentially
operations. In addition the pre-emption represents good value and offers an excellent
opportunity for Molopo to consolidate its position in projects with significant gas reserves and
resources in close proximity to the growing gas markets in Queensland”.
There is plenty for the attendees at tomorrow's conference to feast on!
From this morning's announcement detailing the first part of the reserve upgrade I have extracted some of the points that I found most encouraging:
Mungi-20V establishes new production record for a well the Mungi Field with production building to 1.8 MMscf/d and still increasing. Mungi Field reaches record production level.
Molopo intends to continue its reserves expansion activities during 2010 with exploration and appraisal campaigns planned for Harcourt North and Timmy Prospects.
A separate reserves review process is also underway for the Lilyvale/Oak Park acreage in ATP 564P which is expected to be finalised during March.
Drilling results and the subsequent follow-up reviews are aimed at transferring a portion of the contingent resources into 2P and 3P reserves before the end of the calendar year.
Mungi-20V, has set a new record for a producing well in the Mungi field and surrounding areas.
Total Mungi Field production now exceeds 2.8 MMscf/d; this represents a new record for production at Mungi since the field started in late 2003.
The current well Mungi-23 will be the last in the development trial programme. It will represent the first triple-seam/triple-lateral drilled in Australia and to Molopos knowledge in the world.
The increases in reserves provide Molopo with the largest 2P reserves position in Queensland which is not subject to firm supply contracts.
Significant upside scope still exists to increase cut-off depths at which gas in the ground can be commercialised and the reserves base further increased.
With Molopos gas-fired Power Generation study now entering the bankable feasibility stage and the extension of its gas sales agreement with Dawson sales Pty Ltd, the company is well positioned to access the expanding revenue stream from the increasing gas production.
It is possible that Molopo will become the largest net gas producer in the Moura area.
The net reserves now confirmed and the scope for further increases provide Molopo with the scope to supply gas to the emerging Gladstone LNG market as a secure independent third party supplier.
The application of advanced technology and novel drilling techniques and the creation of an operational excellence bodes well for future operations.
It is interesting to see what difference a day makes!
From Getagraph.com
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Tuesday 9 Mar. 2010]:
MOLOPO AUSTRALIA LIMITED is up by 4.62% yesterday from AUD 1.30 to AUD 1.36, and has now gained 4 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 5 out of 10 days, and is up by 3.03% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 1.09 million more shares than the day before. In total there were bought and sold 1.43 million shares for approx. AUD 1.94 million.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED has broken the wide and weak falling short term trend up. In first place a slower falling rate is indicated, but this may very well be a first signal of a trend shift. On reaction back there will be support on the roof on the current trend broken, which is AUD 1.35, a level that may pose a second chance to hit a runner. According to fan-theory AUD 1.67 will be next possible trendtop level and thereby pose a resistancelevel which may not be broken on first attempt.
Support/Resistance |s
Support 1: AUD 1.35 Resistance 1: AUD 1.38
Support 2: AUD 1.33 Resistance 2: AUD 1.40
Support 3: AUD 1.32 Resistance 3: AUD 1.46
MOLOPO AUSTRALIA LIMITED [Monday 8 Mar. 2010]:
MOLOPO AUSTRALIA LIMITED is up by 1.56% yesterday from AUD 1.28 to AUD 1.30, and has now gained 3 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 5 out of 10 days, and is up by 5.69% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 11 265 more shares than the day before. In total there were bought and sold 336 815 shares for approx. AUD 437 860.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays the upper part of a wide and strong falling trend on short term, and this will normally pose a very good selling opportunity for the short term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trendline at AUD 1.35 will in first place indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short term trend the stock is expected to fall -10.2% during the next 3 months and with 90% probability hold a price between AUD 0.92 and AUD 1.21 at the end of this period.
Support/Resistance |s
Support 1: AUD 1.30 Resistance 1: AUD 1.32
Support 2: AUD 1.24 Resistance 2: AUD 1.33
Support 3: AUD 1.19 Resistance 3: AUD 1.37
sold me 40,000 mpo near close at 1.39 to nice of short term profit not to take 39% on one half 20% the other ,might well buy back in today tomorrow low 1.30's
EL&C Baillieu analyst Ivor Ries says the major companies with projects to process coal seam gas into liquefied natural gas (LNG) for export to Asia are negotiating to buy gas from smaller players so they can spread their risk.
Molopo (MPO) and Eastern Star Gas (ESG) are Ries' picks among the smaller players but he says there are several others with the potential to lever themselves into LNG developments as minor suppliers. Ries describes them as "tail gaters" because they will hitch a ride with the majors who are building LNG plants at Gladstone
He says this might be the opportunity for companies such as Bow Energy (BOW), Victoria Petroleum, Blue Energy (BLU), Icon Energy (ICN), Metgasco (MEL), Westside (WCL), Comet Ridge (COI) and Eastern Corporation (ECU.)
The majors include Origin, which Ries says is starting to look fully priced, Santos/Petronas of Malaysia and Britain's BG.
Ivor Ries says Gladstone can probably support five to seven LNG trains, or processing plants, but one plant might operate two to four trains, so not every one of the five projects that has been announced is expected to proceed. But as the development work progresses, the majors who will build LNG plants are looking to diversify their sources of supply. A major might supply 70% of a plant's requirements but aim to spread its risk by taking the remainder from smaller players, and banks providing the project finance will also feel more comfortable if gas is coming from six fields instead of four.
"This provides the opportunity for the smaller guys who would never have the money to do it themselves in the time frame," says Ries.
http://www.thebull.com.au/articles_detail.php?id=10274
from Wilson HTM:
Molopo Energy Limited Initial 2P and 3P reserves for Lilyvale/Oak Park
Announcement details:
MPO announced initial independently certified 2P and 3P reserves for the Lilyvale/Oak Park field of 42 PJ and 157 PJ respectively.
The reserves certification is based on commercialisation of the Lilyvale gas field through the development of a gas-fired power station.
The 2P reserves of 42 PJ are sufficient to support a 30MW power station for its 20 year life. Appraisal and planning is expected to commence in 2011 for a 30MW initial phase, with expansion to 60MW.
MPO has now exceeded its CY2010 2P and 3P reserves targets for Queensland CSG of 200 PJ and 500 PJ respectively.
Net reserves for MPOs Queensland acreage now upgraded to 24 PJ of 1P, 218 PJ of 2P and 600 PJ of 3P.
WHTM view:
Initial analysis This is a positive step towards converting resources to reserves for the Lilyvale/Oak Park field. We understand that the reserves upgrade was not a result of additional drilling but a reassessment in light of the proposed commercialisation of the gas.
Earnings implications - No material changes expected to forecasts, to be confirmed when our model is updated to incorporate the proposed power plant.
Investment view MPO continues to make progress towards increasing reserves for its Queensland CSG. In early March, it reported substantial increases in the 1P and 2P levels for its Mungi field. We expect further reserve additions with further development at Mungi and exploration drilling at Harcourt and Timmy during 2010. Progress also continues with its Canada unconventional oil and shale gas projects. We retain our BUY recommendation, price target of $A 2.25 under review but is likely to remain unchanged.
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Monday 12 Apr. 2010]:
(Autocomments)
MOLOPO AUSTRALIA LIMITED is up by 2.40% yesterday from AUD 1.25 to AUD 1.28 , and has now gained 3 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 7 out of 10 days, and is up by 16.36% over the past 2 weeks. Volume fell last day by -0,09 million shares and in total there was bought and sold 1,41 million shares for approx. AUD 1,80 million. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
3 MONTH TREND
Given the current horizontal trend you can expect MOLOPO AUSTRALIA LIMITED with 90% probability to be traded between AUD 1.07 and AUD 1.34 at the end of this period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend and up the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
Support/Resistance |s
Support 1: AUD 1.20 Resistance 1: AUD 1.30
Support 2: AUD 1.18 Resistance 2: AUD 1.32
Support 3: AUD 1.15 Resistance 3: AUD 1.37
From Getagraph.com
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Tuesday 13 Apr. 2010]:
(Autocomments)
MOLOPO AUSTRALIA LIMITED fell by -0.78% last day from AUD 1.28 to AUD 1.27. . In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 7 out of 10 days, and is up by 15.45% over the past 2 weeks. Volume increased last day by 0,36 million shares, but on falling prices. This is may be an early warning and risk is increased a bit for the next couple of days. In total there were bought and sold 1,77 million million shares for approx. AUD 2,25 million.
3 MONTH TREND
Given the current horizontal trend you can expect MOLOPO AUSTRALIA LIMITED with 90% probability to be traded between AUD 1.09 and AUD 1.37 at the end of this period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend and up the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
Support/Resistance |s
Support 1: AUD 1.20 Resistance 1: AUD 1.28
Support 2: AUD 1.18 Resistance 2: AUD 1.30
Support 3: AUD 1.15 Resistance 3: AUD 1.37
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Wednesday 14 Apr. 2010]:
(Autocomments)
No changes to price of MOLOPO AUSTRALIA LIMITED last trading day. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 6 out of 10 days, and is up by 12.39% over the past 2 weeks.
3 MONTH TREND
Given the current horizontal trend you can expect MOLOPO AUSTRALIA LIMITED with 90% probability to be traded between AUD 1.11 and AUD 1.40 at the end of this period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend and up the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
Support/Resistance |s
Support 1: AUD 1.20 Resistance 1: AUD 1.28
Support 2: AUD 1.18 Resistance 2: AUD 1.30
Support 3: AUD 1.15 Resistance 3: AUD 1.37
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Thursday 15 Apr. 2010]:
(Autocomments)
MOLOPO AUSTRALIA LIMITED fell by -0.79% last day from AUD 1.27 to AUD 1.26. . In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 5 out of 10 days, and is up by 9.57% over the past 2 weeks. Volume increased last day by 1,46 million shares, but on falling prices. This is may be an early warning and risk is increased a bit for the next couple of days. In total there were bought and sold 2,22 million million shares for approx. AUD 2,80 million.
3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays the middle of a wide and weak rising trend on short term and further rise within the trend is signalized. Given the current short term trend the stock is expected to rise 2.1% during the next 3 months and with 90% probability hold a price between AUD 1.13 and AUD 1.41 at the end of this period.
Support/Resistance |s
Support 1: AUD 1.20 Resistance 1: AUD 1.27
Support 2: AUD 1.18 Resistance 2: AUD 1.28
Support 3: AUD 1.15 Resistance 3: AUD 1.37
From Getagraph.com
from Wilson HTM this morning:
Molopo Energy Limited – MPO signs gas sales agreement in South Africa
Announcement details:
MPO has signed a gas sales agreement with Novo Energy (Pty) Limited, a privately owned South African company.
The GSA is for MPO to supply, on an "as available" basis, ~600 mscfd of gas from four existing wells in MPO's Virginia field.
The gas will be used for compressed natural gas (CNG). Novo will construct CNG facilities near each well head and transport the CNG to customers for use in local vehicles.
Under the GSA Novo has the right to purchase gas from an additional four existing wells, which if exercised would take total supply to ~1 mmscfd, on the same pricing terms.
Novo also has the first right of refusal to purchase additional gas from new wells developed by MPO, up to a total of 8.2 TJ/d (~3 PJ/year), on separate terms.
Commencement of gas supply is subject to conditions precedent being satisfied, including regulator approvals.
MPO expects to submit a "Production Right" application to the authorities in the coming weeks. The approval process may be lengthy, however, MPO has received interim approval.
The GSA is for a 10 year term. Gas sales are expected to commence in March 2011.
WHTM view:
Initial analysis - This is a small but positive development, which will enable MPO to receive revenue from gas that is currently flared or vented. Revenue could potentially be augmented by carbon credits, given the reduction in methane emissions associated with the cessation of venting (methane is ~20 times more potent as a greenhouse gas than carbon dioxide).
Earnings implications - Under review. The impact is expected to be relatively small; the GSA will result in earlier revenue (1HCY11) than we had modelled (small scale LNG from mid-CY12) for this project.
Investment view - We believe MPO continues to make good progress progressing its key projects. Buy recommendation retained, price target of $2.45 under review.
John Young | Senior Resources Analyst
Wilson HTM Investment Group
some early press coverage
http://www.finnewsnetwork.com.au/arc...work14447.html
The Managing Director Stephen Mitchell has transferred some shares to his super fund. He has also exercised 250k options.
However what is very interesting about these transactions, and something that we can speculate about is this:
Why were the options exercised now given that they did not expire until August? Are they trying to get their hands on as many shares as possible, as soon as possible
Why transfer some of those shares to his super fund now? Is he expecting the share price to dramatically rise between now and August, and wanted to get them into his super fund as soon as possible, so as to minimize the capital gains tax impost on the gains.
All very positive activity as far as I am concerned.
Following Shell's most recent acquisition, Ivor Ries has commented as follows:
The flurry of US shale gas transactions is relevant to Molopo as the company owns 2.2 million acres of shale gas lease covering most of the Utica and Lorraine shale formations in Quebec. While at an earlier stage of development, many petroleum geologists consider the economics of the Utica and Lorraine shales to be as good as if not better than the Marcellus.
Molopos high grade thermogenic Quebec acreage totals 375,000 acres and is estimated to contain up to 6Tcf of recoverable gas. Based on the Shell-East Resources deal valuation, MPOs Quebec project should have a market value of approximately US$800 million once the company has proven the production characteristics of its lease holdings. Molopos first exploration wells in Quebec are expected to spud in the next few months.
Shale gas land grab heating up. Over the past six months the US oil and gas industry has been in the throes of a shale gas land grab of unprecedented proportions. The race to acquire unexploited shale gas stems from the widely held view that the current over-supply of natural gas in the North America is a product of the explosion of unconventional gas drilling that occurring prior to the Global Financial Crisis.
While Molopo seems determined to push ahead with sole risk exploration wells in the Utica Basin, the farm-out of some or all of the companys shale gas acreage cannot be ruled out. In our view any firming of the North American gas price over the next 12 to 18 months would see MPO besieged by larger players seeking access to its extensive acreage.
looking more bullish
http://www.buysellsignals.com/BuySel...a_pdf_1432.pdf
The following (minus any tables) is the latest from Credit Suisse:
Molopo Australia
INCREASE TARGET PRICE - upgraded our target price to $1.70/share
FY results
MPO announced on 27 August its FY10 results with a headline NPAT of $2.6mn coming in slightly ahead of Credit Suisse forecast ($1.8mn). We have increased our target price to $1.70/share.
While the result was reasonably positive at the bottom line, it was buoyed by oneoff items, namely proceeds from asset sales amounting to $14mn in the year.
Catalysts for the stock moving forward will continue to be drilling activity, particularly on Canadian oil, with the resultant increases in production rates towards target volumes. In the longer term, drilling activities should lead to increased reserves and commercial definition in a number of its assets.
We have had made minor adjustments to our production and costing assumptions, which along with rolling forward our valuation, has slightly changed our earnings estimates over the forecast period.
As a result of our changes to our forecast earnings, we have slightly upgraded our target price to $1.70/share (from $1.65/share), which is underpinned by our 1.69/share valuation.
Our rating remains OUTPERFORM.
FY10 results
MPO announced its FY10 results with a headline NPAT of $2.6mn coming in slightly ahead of Credit Suisse forecast ($1.8mn).
Details
Headline NPAT of $2.6mn;
Revenue from oil and gas sales of $6.1mn;
Net cash balance of $65.7mn (including a $15mn term deposit);
EPS of $0.01/share; and
No dividend declared.
While the result was reasonably positive at the bottom line, it was buoyed by one-off items, namely proceeds from asset sales amounting to $14mn in the year.
Although MPO still has a thematic as a long-term gas story, the short- to medium-term interest is its Canadian oil play, which continues to build.
Catalysts for the stock moving forward will continue to be drilling activity, particularly on Canadian oil, with the resultant increases in production rates towards target volumes. In the longer term, drilling activities should lead to increased reserves and commercial definition
in a number of its assets.
Reserves
We have written previously that Molopo.s growth is becoming increasingly linked to its Canadian portfolio, particularly the acceleration of the work programme on the Bakken/Spearfish oil plays. On 10 August, Molopo announced a significant reserves upgrade on its Canadian oil plays.
Operations
Canada
Spearfish
MPO is looking to spend 2011 drilling extensively in the Spearfish project with the back-end of the 2011 programme to be determined once results from its initial 25 well portfolio are reviewed (expected in October). The company noted that it expects costs to decrease from >$20/b to c.$10/b over the next several years noting that the economics of the project are looking robust at or around current oil price levels.
We have slightly adjusted our modelled assumptions to reflect these comments.
Bakken
Results remain encouraging (oil found in five of six wells drilled thus far) and 2011 will see MPO continuing to assess results over what is a very large acreage (42,420 acres).
New South Wales and China
Concluded sales of assets during the period.
Queensland CSG
Although the main focus for the company has been pursuing its high-margin oil play, we note there has been significant movement on other parts of the portfolio.
The company has executed a purchase in relation to the ATP564P and 602P JV securing an additional equity stake and operatorship. As a result, MPO has increased its equity
positions in these permits to 67.12% (ATP564P) and 62.88% (ATP602P), respectively, from 50% for a total cost of A$7mn.
Indicatively, this gives the company additional leverage and control of work programmes.
Although the company maintains an .asset development. attitude to its Queensland CSG holdings we see their relevance as becoming less important, initially from the ramp-up of Canadian oil and later from the development of the company.s shale gas plays.
South African gas
Molopo (through its subsidiary company) has signed a GSA with Novo Energy (Pty) for the supply of gas on an .as available. basis for approximately 0.6mmcfd from the Virginia gas field. The contract term is for ten years. First gas is expected in March 2011. Ultimately,
Novo has the right to purchase additional gas up to 8.2TJpd.
A small but perhaps significant first step in the establishment of a South African business, although we see it at this time in the same context as Queensland CSG . small and likely to remain small when weighed against the upside opportunities potentially to emerge from the Canadian assets.
Earnings changes
We have had made minor adjustments to our production and costing assumptions, which along with rolling forward our valuation, have slightly changed our earnings estimates over the forecast period. We note that while the numbers are significant in percentage terms, they are not significant changes in real dollar terms.
We have increased our expected NPAT for FY11F by 18% from $14.5mn to $17mn. There is a flow-on effect to FY12F earnings of 4%.
Valuation and target price
As a result of our changes to our forecast earnings, we have slightly upgraded our target price to $1.70/share (from $1.65/share) which is underpinned by our $1.69/share valuation.
Our rating remains OUTPERFORM.
macquarie have commenced coverage
Initial target $1.60 set at 20% discount to their NPV of $2
And it looks like it has generated some interest.
impressive initial bounce albeit from extremely low levels.
according to the data for settled transactions for this month, Macquarie Retail have bought a net 318k.
one of the advisers that was very close to this stock at Baillieus, George Varlamos has moved to Macquarie this month and I think that he may have been responsible for Macquarie commencing coverage of the stock.
Molopo recently presented at Macquarie's Asian conference which was probably the introduction of Molopo to Macquarie.
I have been told that the analyst report on MPO has been distributed to Macquarie's Canadian office. If their is any genuine interest (which there should be because of the prevailing share price) we could see some very large buy orders coming through in the near future.
ord minnett buying
from the report of trades settled this month I noted that Ords were one of the main buyers this month.
I have just had another look at that report and I note that the net 250k bought is represented from 49 trades and that they have had no sell trades at all.
Does anyone know whether they have also commenced coverage of the stock?
http://www.theaustralian.com.au/busi...-1225922987254
Basking in the glow of renewable energy
CRITERION: Tim Boreham From: The Australian September 15, 2010 12:00AM
Molopo Energy (MPO) $1.095
EVEN if renewables make inroads, there's still the wee imperative to find more oil to satisfy insatiable demand in the meantime.
In North America, there's been a rush on shale and other unconventional oil and gas -- "tight" reserves that have been hard to extract economically. Advances in horizontal drilling and fracturing techniques mean that's no longer the case.
Flush with more than $100m from the sale of NSW gas assets to AGL, Molopo last year invested in shale oil acreage in Canada, in the so-called Bakken play in Manitoba province and Spearfish in Saskatchewan.
Molopo currently sits on 2P reserves of 9.2 million barrels in Canada -- mainly attributable to Spearfish -- but with a recoverable upside of 30-40 mb. The focus currently is on a 25-well, $30m push at Spearfish, but with a four- to five-year ambition to complete at least 380 wells.
While being unloved is a perennial complaint in the sector, Molopo points to the lustier valuations ascribed to Canadian-based unconventional stocks.
"It's hard for us to have North American assets valued here," chief executive Stephen Mitchell says. "They can see value in coal-bed methane, but they haven't seen it yet in oil or shale gas."
Supporting this plaintive cry, Macquarie's analysts yesterday ascribed a $2 valuation to Molopo shares. The firm ascribes an 84c-a-share valuation to Spearfish field and a further 33c to Bakken, which means Mopolo's other assets -- including the Mungi gas field in Queensland -- are thrown in along with the free steak knives.
Another supporting feature is that Molopo is not just about blue sky: it is producing from Spearfish at an attributable rate of about 520 barrels a day, but hopes to raise this to 2000 bopd by December when more wells come on stream.
We rate Molopo a speculative buy, given the evidence that local investors are yet to latch on to the Next Big Thing. The key risk is that funding for an expanded well program will dry up.
I was asked by a friend that was unable to get to the meeting to take some notes, so I?ll also share them with you. I have been reluctant to post them on a forum as there is a bit of disenchantment of late, and I am not interested in getting into a slinging match with anyone about my observations. I do think that the time to become bullish about this stock is rapidly approaching.
It was a very interesting morning, and as you would have seen from the share price appreciation Friday and today, the market reacted positively to the presentation notes.
The Chairman opened the meeting, and wanted to express some comments before handing over to the MD. He started off stating how 2010 has been such a pivotal year for MPO, and nearly gloating about how successful that they had been making early acquisitions. He then went on to talk about how the industry had changed over the last year, to add shale to CSG. Don stated that they expected to make the same return from Wolfgang as has been expected from Spearfish. He even went on to state that it is ?exciting? to see how well the company?s assets are performing. But then in the next breath spoke of delays from Mungi! ?Africa is going swimmingly? he said. ?Quebec has become a millstone with problems about processing and from the greenies? and will now not be drilled until the first half of 2011. He also said that he was proud to report that operational income has increased from $750k to $6m.
At this stage, a question/comment came from the floor, to the effect that it was all very well for the Board to be happy about the development of the assets, but the reality was, that the market is the adjudicator by share price performance and that had been abysmal. Don acknowledged this and stated that they were amazed how ignored the company was, and made particular reference to the announcement of the initial oil reserves which should have added a minimum of 40c per share. Another person asked whether they had done any research as to why they were being ignored. The response was along the line of Australians don?t value overseas assets, and Canadians/North Americans don?t look to invest on the ASX.
As has been announced by the company, all the resolutions were carried, and without any drama or objection. Very few questions were raised, however regarding the Constitution, a question was asked as to why the MD was exempt from facing election! The answer was that it was in accordance with normal practice and the ASX rules.
Then came the vote for the increase in the maximum $ for the Director Fee Pool. I was expecting this resolution to cause discussion, and I was not disappointed, as a question about the possible TSX listing arose. The Chairman stated that he could only offer a personal view, and that was that he hoped that it would be completed by the end of this calendar year. That is not the decision, but the actual listing! And that the TSX listing would require more independent directors to be appointed. A further question was asked as to whether it was the intention to appoint directors for the Canadian listing or for the local Board (or from Australia). Don replied both.
The Employee Incentive Scheme was approved with no questions being asked. I thought sure that someone would raise a question about that, purely because I believe that it is misunderstood.
Stephen then got his opportunity to speak. I think that he was fearing an assault from the floor, so came out punching from the start, about how he was so disappointed with the poor share price performance. He also thought that the Australian market overlooks the shale/tight oil or gas market. He added that the shale market should be no less spectacular than the CSG market. He thought that perhaps the market had taken an incorrect message from the Anglo sale. Mention was also made of the collapse of the gas prices in North America. Stephen then went onto say that MPO had a package of 1st class assets and a 1st class team working for it, and that they intend to crystalize the full value of the assets over the next year. I felt that he really meant what he was saying. He emphasized that no onshore energy company in Australia has the potential to build 100Pj of gas. Their short term focus is oil and the longer term is gas.
Quebec has been divided into 4 prospective areas.
Stephen stressed the point that MPO has adopted the forward plan as created/derived by Monty Bowers, and that MPO was not trying to impose a plan created by a bunch of Aussies.
Spearfish was originally drilled about 30 years ago and EOG started in that area in 2007. The technology now applied by MPO and the timing of its introduction could not have been better. They felt that it was a major achievement to get the initial reserve classification within such a short time and with such limited drilling.
Spearfish/Bakken is now running at over 1000bbls/d. This was news to me, but they referred to a recent announcement (but I cannot find it) and they are still focusing on 2000bbls/d by Xmas.
They want to emulate EOG results, but achieve it by drilling half the number of wells but twice the length.
p.12 of the presentation refers to the cost of each well. When they commenced it was close to $1.8m and now they have got that down to $1.5m and they are looking to drive that down further. Also note the estimated oil recovery rates on that page.
p.13 points out that they expect to make $40 per barrel.
Re Bakken, Monty is still hopeful of achieving the targeted 110blpd (but may take time).
Re Wolfcamp, in USA the landowner has the mineral rights to the land, so MPO have got someone going around offering farmers a price to acquire a lease to their mineral rights. Apparently this was going very well until El Paso came onto the scene and snapped up 120k acres @ $175 per acre. El Paso is only 10 miles from the boundary of MPO. The potential for the results from Wolfgang to be several times higher than Spearfish and many times higher than the Bakken. The acquisition of Wolfgang has caused a change of focus for MPO and has caused the board to look at the portfolio in a different light. We can expect a change of priority.
Re Qld., Stephen believes that they have made great strides in commerciality, but admits to being behind target and over budget. Mungi 21 & 23 are still in a dewatering phase but they are hopeful of having production rates prior to the end of 2010. I think that he also said that 2 rigs are currently drilling at Harcourt and Mungi.
Re Quebec, MPO will retain the sweetest spot but will look to farm out other areas. MPO is letting Talisman take the lead in the fight so that there is no opportunity for the Canadians to make leverage out of the company wanting to exploit the area being a foreigner, being an Aussie co.
The concluding remarks from Stephen was that the Board had a plan to unlock the true value of the company very soon. They will look to finance the development of the assets from a combination of:
A growing cash flow
Asset sales
Debt
Equity (from a TSX listing)
I have to state that the presentation was extremely good and Stephen was particularly convincing.
At the AGM last week, the Chairman indicated that the Board may be looking to add to their numbers, to add to its strength, and in light of the need of more independant directors should a TSX listing be pursued.
If one looks at the top 20 shareholder list, it is interesting to me to note a couple of additions that could be potential candidates:
Roger Corbett
Thomas Fontaine (Avatar Equities)
Holders of this stock would share my frustration with the lack of share price appreciation.
Many holders on a number of forums have linked the lack of performance to the inaction of the board.
On another site there is mention that a group known as Radar Group http://www.radargroup.com.au/ are telephoning shareholders to ascertain their views.
It is my understanding that this action has been orchestrated by a large shareholder.
It would be interesting to hear from other holders if they have been contacted, to learn what is being proposed to be done to rectify the lack of performance.
Molopo Energy Limited (Company) has received a requisition from shareholders holding approximately 6.75% of the issued capital of the Company to call a general meeting under section 249D of the Corporations Act.
It is time for a changing of the guard.
For too long shareholders have had to wait to be rewarded.
It is time to revitalise the Board.
Some background information about Greg Lewin:
http://investing.businessweek.com/re...le=SASOL%20LTD
http://people.forbes.com/profile/gre...r-lewin/148215
http://www.prnewswire.com/news-relea...-88408697.html
PRESS RELEASE
Molopo Shareholders Call for Board Renewal and Strategic Refocus
Molopo shareholders have today lodged a request for Molopo to call an extraordinary general meeting of shareholders (EGM) to elect two new Board members, former Shell executive, Greg Lewin and Melbourne businessman, Mr Max Beck.
Should they be elected, the new Board members intend to execute targeted strategies to build shareholder value and to arrest the stagnation of the company and its share price. These strategies will see the company focus on the rapid development of its most valuable assets, including those in Canada, and maximizing value. In order to achieve these strategies, the company will apply its energies to accelerating production and minimizing costs, thereby extracting value from its existing asset base.
The shareholder group has been moved to take this action following a prolonged period of share price underperformance. It also reflects feedback from a broader group of shareholders who have expressed a lack of confidence in the existing Board.
Shareholders need the Board to develop and implement a credible plan to realize the value of the company’s assets within in a reasonable timeframe and without significant dilution in value for existing shareholders.
Molopo shareholder, Mr Max Beck, commented, “This is not a step we have taken lightly. We made a friendly approach to the Board through the Chairman, Donald Beard on Wednesday 15 December but we did not receive a response within the agreed timeframe. We have called for an EGM because there is a strong desire for change and shareholders should be given the chance to decide for themselves.
“The market’s reaction to the company’s most recent major announcements reflects it’s skepticism about the Board and its ability to deliver.”
“Shareholders have heard enough excuses and Molopo needs a Board with a sense of urgency. It is time to generate value from the existing asset base by injecting new experience and bringing some hard nosed, commercial common sense to the Board”.
The EGM will consider a motion for board renewal to be effected by electing Mr Greg Lewin and Mr Max Beck to the Board of Molopo in place of existing directors, Chairman Donald Beard, and non executive director, Dr Bruce Hobday.
Mr Lewin, previously President of Shell Global Solutions has had over 30 years experience in the oil and gas industry. He is a non-executive director of Sasol Limited.
Mr Max Beck is a successful business man and major shareholder in Molopo. He has offered to join the Board to bring a strong commercial perspective and to act as a direct voice for shareholders. It is intended that his tenure on the Board would continue while the change in corporate focus is underway.
Media enquiries:
Nerida Mossop
Hinton and Associates
03 9600 1979
0437 361 433
Financial Review p17
John Stensholt
Molopo malcontents on move
A group of wealthy investors, including two billionaires, is pushing to oust the chairman and a director of junior oil and gas explorer Molopo Energy.
The group which includes billionaires Bruce Mathieson and Boris Liberman, as well as Melbourne property developer Max Beck and Fairfax Media Chairman Roger Corbett - lodged a request with the Molopo board for an extraordinary general meeting.
The group has agreement from the 5% of shareholders needed to force an EGM.
They are unhappy with the board's management of Molopo, the shares of which have fallen 24% this year, and, in particular plan to spin off its Canadian oil assets in 2011.
The group is seeking the removal of Molopo Chairman Donald Beard and non-executive director Bruce Hobday, and their replacement with Mr. Beck and Greg Lewin, previously president of Shell Global Solutions.
Other shareholders behind the move are Terry Jackman, Sundland Group chairman, and Eddie Cutner, co-founder of Melbourne apartment developer Central Equity.
If the group achieves its aim, Mr Lewin will be nominated as new Molopo chairman. He and Mr Beck said they would push for the company to accelerate production of its assets, which include oil shale projects in Canada and coal-seam gas assets in Qld and South Africa.
Mr Beck said the group was taking the action after what he described as a prolonged period of share price underperformance. He claimed the group had received feedback from other shareholders who had expressed dissatisfaction with the board.
"This is not a step we have taken lightly," Mr Beck told AFR. "We made a friendly approach to the board through the chairman on December 15, but we did not receive a response within the agreed timeframe. Shareholders have heard enough excuses and Molopo needs a board with a sense of urgency.
"The market's reaction to the company's most recent major announcements reflects its scepticism about the board and its ability to deliver."
The company announced on November 29 that it would spin off its interests in the Spearfish and Bakken oil projects in Canada into a new entity called Molopo Canada, which is expected to list on the Toronto Stock Exchange in the first quarter of 2011. Molopo shares have fallen since that announcement.
Molopo managing director Stephen Mitchell said the shareholder action was opportunistic, and defended the company's strategy. " I couldn't have a better or more experienced Board," he said. "In terms of our Canadian assets the market view is that the money we've spent there in the past 15 months, about $100M, will double in value when we do this. We've not had a single call from any shareholders suggesting we review the strategy. We welcome constructive shareholder feedback and we, too, are frustrated with the short-term performance of the share price."
Analysis of past AGM votes
The following represents some statistics for consideration:
2010 only 23% of shares voted
2009 only 34% of shares voted * discussed further below
2008 only 16% of shares voted
2007 only 14% of shares voted
2006 only 16% of shares voted
2005 only 19% of shares voted
2004 only 12% of shares voted
2003 only 24% of shares voted
2002 only 7% of shares voted
2001 only 21% of shares voted
I suspect that the % voting at an EGM might be higher than an AGM.
In 2001, 2003, 2005, 2007, 2009 Beard faced the voters. In 2009 a belated concerted effort to dispose him was left too late to succeed, but an EGM called for the specific purpose of removing him might have a different result.
Given that the top 20 only account for about 30% of all shares, I suspect that the vote is going to be very interesting. If the results of 2009 were to be repeated, except for one large holder opposing Beard that previously voted for him, he could be in big trouble.
Shareholders need to consider whether they believe that Beard and Hobday have the capacity to add value to their investment.
On another share chatroom site a poster has suggested that Beard is gone for all money, and I think and hope that he is right.
When shareholders look back over the past 10 years, they can ask the question, how have shareholders been rewarded during the time that Beard has been Chairman?
Donald Beard was appointed to the Board, and as Chairman in April 2001.
During his tenure as Chairman of MPO:
according to Commsec, the shareprice (after adjusting for the consolidation etc) was 25c at the beginning of that month (Apr 2001) and closed at 19c at the end of that month;
the shareprice did not maintain any significant change until Jan. 2007;
during 2007 & 8 shareholders were able to witness a change of fortune with the share price rapidly increasing to a high of $2.03 in June 2008. But much of that share price appreciation was attributable to the market momentum behind the CSG industry in Aust., rather than anything in particular to do that MPO created itself.
then came the GFC, and the MPO share price cam crashing down to a low of 40c, aided by the capitulation of a so-called hedge fund.
in the 6 months that followed to April 2009 the share price of MPO managed to recover to about $1.
Some 20 months later the shareprice is only just above that price of $1.
So for the first 5+3/4 yrs under Beard's reign shareholders saw no reward. and for the last 20 months they have seen virtually no reward.
Additionally shareholders contributed $1.25 in July 2007 for new shares and either $1.15 or $1.03 in April 2010.
Considering all of the above:
do shareholders believe that Beard has added value to their investment in MPO?
Can anyone enlighten us as to what benefit Mr. Invisible has brought them?
Don't we shareholders deserve better value and rewards?
It is always worthwhile reviewing posts of the past, especially in light of what transpired thereafter.
In 2007 Beard sold a large parcel of his MPO shares just prior to the AGM.
As I recall from the subsequent conversation I had with Beard, he was forced to sell at the time. But what was most annoying to me was the following:
He had got up at an AGM and told everyone how strong the outlook for the company was;
He did not mention, or even elude to the fact that he had sold in the days prior;
I think that they chose to release the notification late;
The notification was erronous, and perhaps done to deliberately cover the fact that is was released late in my opinion;
As reported at the time, in my opinion, the Company Secretary chose to answer a question in a way in an attempt to cover up the mistake.
At the 2009 AGM, when the matter of the re-election of the directors was under discussion, I asked the question as to whether it was possible for directors to affirm whether they has sold any shares is recent days, but had not as yet released the relevant notice to the ASX. Beard attempted to diffuse the situation by stating that he misunderstood the necessity for such a question. By way of further explanation, I stated that I wanted to be reassured that the situation that had occurred in 2007 was not repeated. In reply, Beard stated that he was unaware of the situation that I was referring to. At this stage I was left with no alternative, than to explain to the meeting what I was referring to. To my absolute astonishment, Beard then made a statement that he could not recall the situation. This was despite the fact that I had written to the Managing Director, spoken to the Company Secretary, and personally written to the Chairman, and the Chairman had also telephoned me to discuss the position at the time.
Given all of what transpired, my faith in the Chairman was totally destroyed, and I could not vote for his re-election.
In my opinion, Beard is incapable of chairing this company and must be removed.
"the MATES club"
I think that is the important point emanating from research about the current directors.
The Mitchell family with Peter Mitchell (Stephen's father) on the board of MPO and Lowell was able to commercialise the value of an investment of theirs by arranging for MPO to purchase the asset - Liulin. The consideration was MPO shares. In the process, the Mitchell family then had sufficient shares to arrange for Stephen to be appointed as a director, and within a month as Managing Director.
Hobday was on the board of MPO at this time.
Beard was appointed Director & Chairman by Stephen Mitchell.
The "Mates club" currently represents the majority of the board of MPO and it needs to be broken up to improve the accountability of the board to shareholders of MPO.
Will Beard exercise early?
According to the Annual Report, Beard hold 300k options exerciseable at 33c that do not expire until 6th Nov. 2011.
It will be interesting to see if he elects to exercise early. If he does, that would indicate to me that he realizes that he is going to get rolled at the EGM.
If he does not exercise early, then one can only presume that he likes to bet big at poker! On my calculations it is currently a bet of $210k plus.
Yes it would be a nice profit, but the options do not expire until November.
The big question that he has to answer is, "will I still be on the board after 15th February?" I hope that the answer in NO!
Is he stupid enough to run the risk?
Following the release of the Notice of Meeting and accompanying statements, I feel compelled to make some comments.
Mitchell & co might have had the expertise to buy assets well, BUT they are a miserable failure at delivering on time development. Additionally, with the exception of the sale of Gloucester, there is no evidence to suggest that the current board is able to make positive deals. And Gloucester was sold at a time when deals were a lot easier to undertake.
The current management team needs to be held to account for the dismal share price and the lack of production performance. And for these reasons alone the group of 7 shareholders has made it possible for the lazy and incompetent board to be brought to account. That is the reason for suggesting that a change be made. The current encumbents have failed and must go.
They don't have a sense of urgency, they fail to understand the need to get deals made, they fail to understand that one cannot promise and then fail to deliver.
The current invisible Chairman has to go, no doubt about it. We want someone who is going to promote the company, not just chair a meeting. Even chairing a meeting is beyond him when you look at the way he floundered his way through the 2009 meeting. Beard is past it, and must go.
Hobday was given the job as a mate of the Mitchell family. He left MPO years ago and then came back after he retired from his other commitments which precluded him from continuing as a director of MPO. We do not want dead wood. What did Hobday bring to MPO this time? He sent us off in another direction (India) at a time when management should have been concentrating on existing projects. And was paid hansomely as a consultant for causing the distraction.
It is all very convenient to use the 4 year performance data. Looking at other timeframes presents a totally different picture.
Holders need to read the statements carefully and not take them on their face value.
Beard and co have been very selective about the dates that they have chosen to use to justify their stance about the share price performance:
MPO’s share price (on a consolidated basis) is as follows:
1/1/07 21c
31/12/07 82c
31/12/08 83c
31/12/09 $1.31
31/12/10 $1.06
Additionally, whilst MPO is part of the ASX300 Energy Index now, I do not think that it has been for the whole 4 years that they have chosen to use, so in my view it is irrelevant to use it as a benchmark for comparison. MPO at the beginning of 2007 was considered an extremely speculative stock so one would expect the return would have to be in excess of the index to compensate the level of risk associated with an investment in MPO.
From the statement from the current board enclosed with the Notice of Meeting, "Growth of Mungi/Harcourt (Queensland) coal-seam gas asset." Oh please tell me that they have not chosen to try to sell this asset’s performance as a positive. In Mitchell's own words "it is way over budget and a year behind its timetable"
From their statement, "While the potential for a Canadian IPO or secondary listing was initially announced by the Company in late 2008, the global financial crisis, the significant reduction in North American gas prices, and the acquisition of the Canadian oil assets led to the initiative being deferred until early 2011 to maximise value for the Company?s shareholders." That statement is purely trying to justify a constant changing of strategy, which is one of the major critisizms of the current board of directors. They don't know where they want to be positioned.
Furthermore on two occasions since the initial announcement of the IPO referred to above, directors have given other dates that have not been fulfilled. In answer to a question after a broker briefing in early 2010 Mitchell stated "if it was not completed within 6 months, he would be extremely disappointed". And more recently at the 2010 AGM in answer to a question from the floor, the chairman indicated that the offering would be completed before the end of the calendar year.
From their statement, "The requisitioning shareholders refer to a "friendly approach" to the Chairman." It was put to him that he could retire, without any need to embarrass anyone, but their sheer arrogance got in their way, and so shareholders are now faced with this costly manner of having to remove them.
We cannot afford to let these directors to continue to fail to deliver what they indicate they are going to achieve time after time, and continue to act as directors. We must act now and dump them.
Proxy voting can also be done online - it is very convenient and easy.
I strongly urge all holders to vote in favour of all resolutions.
We have been given a gift, being an opportunity to rid ourselves of this incompetant and lazy board. Seize the opportunity and vote. It can be done online, it is so simple. These resolutions are extremely important. Don't be apathetic - please vote. We have an extremely good chance of being successful.
Beard is used to being around a horse stud, so he might be accustomed to smelling some buckets of ...., and he can guarantee if he chooses to go ahead with the meeting, rather than do what the majority want and resign, that he will get bucket load tipped over him. It will be symbolic of his performance as chairman and as a director.
On another forum it has been suggested a replacement board will sell off company assets as this is a quick option to release value to shareholders. If this does occur and the net proceeds after tax are a multiple of the current share price, like double or treble, then there would not be a shareholder with reason to complain. They will have then seen a massive return on their money, unlike the current losses that so many are sitting on at present, and have been for some time.
We will never know about the potential, if they are never given the opportunity BUT we do know that they have a sense of urgency and drive to see change. We also know that we cannot let the current members remain.
My sentiment is short term buy on the basis that there will be change at the top very shortly.
Don't be conned by the board's statement.
In defence of the Invisible Chairman the board have made some ludicrous remarks in their response to the statement from requisitioning shareholders.
The board seem to be content to believe that the share price has performed in the last four years. Try telling that to any shareholder who bought into either of the share placements (at $1.25 & $1.15) or even the rights issue at $1.03. If that is performance that they are content with, then in my opinion that equates to telling a beggar on the streets of Calcutta to be content and happy with what life has dealt them.
Reference is also made to comparison to the ASX300 Energy Index. In my view, that is an irrelevant comparison. To my knowledge Molopo has not always been a component of that index for the period being analysed. Four years ago, Molopo was a highly speculative share, and one would expect it to outperform an ASX300 index. That is the compensation holders expect for taking on additional risk.
Reference is made to value realization. Shareholders have not seen any rewards from that realization. Since the placement in 2007 I think that the board have spent something like $200M. What rewards have they seen? Certainly not any share price appreciation.
There is the suggestion that should Beck and Lewin be successfully be appointed, and Beard and Hobday removed, that there will be a lack of technical experience on the board. Ian Gorman is the Chief Operating Officer, and a Director, and he has heaps of technical expertise. Additionally, boards are not expected to have the technical knowledge to operate the company. They rely on their staff having those attributes, and this is the case with Molopo. The staff have ample expertise. Boards are there to direct the company on behalf of shareholders.
There is the suggestion that Investor Relations are not the responsibility of the Chairman. He is the person in charge of the whole board and company, and it should be expected that the person holding that position does promote the company. Mr. Invisible does not, and by their response, looks to be abdicating responsibility. That is not acceptable.
If this company had been directed properly with a sense of accountability and responsibility for shareholders over the last decade, it would not still be trading at a significant discount to the true value of the assets it owns.
Mr. Invisible, we do not want excuses, we want action. This seems to evade your comprehension, and therefore you have to go.
Sheezus FC, one of these companies hey.
Yet another board problem. Well call me an extremist but as I have said previously or on numerous occasions, I am a big fan of the thought of brining in Corporate BeHeadings so we can actually watch heads roll so to speak.
I mean, how in the world are the type of people, in these type of positions ever going to be accountable? Answer is, they wont, not ever and why? Because our stupid laws seem to protect their BS they continually get away with (the bad ones that is) and the world keeps spinning.
Change the Law, change the punishment, and then watch the true scale of things come into line.
Off with their heads I say, and I dont even own the stock.
Good luck mate!
A friend telephoned this morning to tell me that MPO are now going to the extreme of utilizing the services of a call centre, that is making calls to shareholders to obtain their views.
That is a wicked waste of shareholders' funds. How much are they being paid Messrs. Beard & Hobday? What gives you the right to use our funds in this manner.
Apparently the caller states that the board recommends that one votes against the motions.
If directors want to canvas holders for their election, then they should use their own funds, not company funds.
IMO it is an abuse of company funds.
Perhaps we should ask the directors to refund the cost of this defense, out of their own pocket.
I'll bet that if they had been required to fund it out of their own pocket, that they would not have been so willing to spend that money.
Readers can rest assured that this matter will be raised assuming that there is the possibility of speaking to the motions.
Perhaps the question should be canvassed along the line of "Wouldn't that being comparable to a Labour Government using government funds to pay for the Labour Party's campaign."
I am sure that Stephen Mitchell, as an unsuccessful Liberal Party pre-selection candidate would then be able to understand our position and objection!
I reiterate my call for all holders to vote. The share register of this company is very wide. Therefore your vote is likely to count more than one thinks. There are not huge blocking stakes on the register.
Let the current directors know that they are not looking after your interests properly. Vote in FAVOUR of all resolutions.
If you appoint the Chairman of the meeting as your proxy, please make sure that you direct him to vote in FAVOUR of all resolutions, OTHERWISE he will use your vote against all resolutions.
If you direct the chairman to vote in FAVOUR of the resolutions, he must vote your shares the way that you have directed.
AFR 27/1/11
Street Talk
Paul Garvey
pgarvey@afr.com.au
Molopo board spill vote looks a close-run thing
It's less than three weeks until shareholders vote on the board spill at oil and gas play Molopo Energy proposed by a high-profile collection of businessmen, and things look headed for a tight finish.
Based on the views of several non-aligned investors who have spoken to Street Talk, the rebel investors - led by Melbourne property developer Max Beck and including billionaires Bruce Mathieson and Boris Liberman and Fairfax Media chairman Roger Corbett - have if nothing else, tapped a broader discontent in the shareholder base.
While Molopo has defended its performance by pointing to an almost 400% rise in its shares over the past four years, that's not washing well with investors who backed the most recent capital raisings.
Early last year an institutional placement at $1.10 (error, should be $1.15) was followed by an entitlement offer to institutional and retail shareholders at $1.03, raising almost $60 million and involving the issue of 55.1 million new shares of roughly 22% of the stock.
Molopo shares have rarely traded above these levels since then, closing on Tuesday at 99c. Further underwater are those who supported Molopo's 2007 raising of another $32.5 million at the equivalent of $1.25 per share.
Much of the frustration in the shareholder base seems to centre around the lack of progress made with drilling at Molopo's prospects in Quebec, which many feel could be a company-maker. Five wells had been planned but,with gas prices at a low, Molopo instead directed the cash towards its oil prospects with success.
Talk of the company pushing into Indian oil and gas exploration has also not gone down well with those keen for progress in Quebec.
While the Molopo board is disappointed with its share price performance, in their defence they are not the only company sitting on an underwater capital raising.
and the dip in its shares is nothing compared with the dive in the share price of Becton when founder Beck quit the stock. After Beck sold out, Becton began a fall from $5 a share to 5c.
The Molopo dissenters have also been vague on their alternative strategy for the company.
From research released this morning from Wilson HTM:
Gorman resigns at COO but is still a director
Recommendation
We have changed our recommendation from Buy to Hold given uncertainty regarding the future direction of the company.
Seven shareholders are seeking to appoint two new directors and remove the Chairman and a nonexecutive director.
Separately, Ian Gorman has resigned as COO.
MPO is proceeding with a planned IPO of its Canadian oil portfolio, however, in our view this may change depending upon the outcome of the Board challenge or may be replaced by a trade sale.
The prospectus notes that oil production peaked in October, suggesting that mid CY11 targets may not be met.
Our valuation has reduced following prospectus revisions.
It is staggering to see the share price still at the current price. Just goes to show that some holders have taken the opportunity to move on as they have absolutely not faith in Mitchell and co. Otherwise one should have expected a 20-30c rise in the share price.
We are selling a core asset, with virtually no upside potential, without shareholder approval.
= desperate action to SOS (Save our Skins)!
Success of the IPO was possibly floundering, and was not guaranteed of succeeding.
Sold it for far less than the 95c per share of reserve valuation that was referred to at AGM.
No bounce in share price coming from the market. One has to ponder why?
Just hope that the buyers share the view that there has to be change.
Vote Beard and Hobday out and vote Beck and Lewin on, otherwise this stock is just going to continue to languish
I know that no-one is irreplaceable, but one has to be very concerned that Ian Gorman has elected to resign. And the reasons for his resignation would also be extremely concerning. If he goes, his team will go with him in due course, leaving the company with very a diminished expertise set.
If the new board members are elected, they will do everything possible to keep Ian.
The revitalization that will occur with the Board changes will reinvigorate the company. Something that has been lacking for a long time.
Now there is more evidence of disarray, sloppiness or incompetence from management today
Did anyone else just receive an email from the company about the proposed EGM, together with supporting links?
It is with absolute amazement that this has been sent out today with old information in the link.
- still talking about the Canadian IPO
- no mention of the resignation of Ian Gorman
- no mention about Beard standing down as Chairman.
The company's management team responsible for the distribution of this outdated information should be immediately sacked for incompetence IMO.
In today's mail holders will have received a printed card urging holders to vote.
The card is dated 2nd Feb and pedals the current board's position.
Whilst being dated 2nd Feb it fails to mention that they have decided to sell Spearfish, which was announced the same day.
Still highlights a 400% return over 4 years even although more than half the shares currently on issue did not exist 4 years ago.
Does not mention that Beard has stepped down as chairman due to ill health, and given his age and health is unlikely to remain as a director long term IMO.
States that they have a "track record of value realisation from the sale of assets." I ask holders does one success make a track record? Not in my opinion. They sold China at a loss (and that was the main asset that gave us Mr. Mitchell as MD). They sold Gloucester profitably, but at the time CSG was fashionable. But one sale does not create a "track record" Bear in mind at the time this was written Spearfish had not sold.
All of that value realization has done nothing for shareholders.
No mention of the loss of technical expertise that is going to occur if Ian Gorman goes.
Why should our company be allowed to spend our money on promoting themselves in this manner? It is corporate waste, abuse of corporate funds and absolute rusbbish IMO.
Yes exercise your right to vote, BUT please vote in FAVOUR of all resolutions.
I have just telephoned the shareholder information line and registered my absolute disgust at them spending our money in this manner.
Below is a copy of a letter that has been sent to 2500 shareholders from Max Beck
Molopo Energy Limited
VOTE FOR ALL RESOLUTIONS BY 11 FEBRUARY 2011
Shareholders must take positive action
‐ Molopo’s share price performance is well below peers with similar oil and gas reserves and does not reflect the value of the company’s underlying assets
‐ Most of the shares in the company have been bought at prices higher than today’s price
‐ The existing Board refuses to acknowledge the problem and has recommitted to the same strategy that has failed to deliver
‐ Molopo needs new Directors with the capacity and motivation to deliver change
‐ Shareholders are being asked to vote FOR Board change to replace existing Directors, Donald Beard and David Hobday with two new independent Directors, Greg Lewin and Max Beck.
‐ Your VOTE FOR CHANGE is required by 11 February 2011
From Down Under to All Over
The Board’s strategy is unclear and is not working
The Board seems to be making the strategy up as it goes along. Molopo has accumulated a collection of assets across four continents from “down under to all over”. With no geographic or asset type focus, financial markets struggle to analyse and attribute value to the various assets in the share price.
Strategic “about turns” and “surprises” have cost Molopo dearly in market confidence
When Molopo bought the Canadian Spearfish assets 18 months ago, the Board said the acquisition was to “build Molopo’s production, cash flow and reserves”. On 2 February 2011, with Spearfish having established itself as a core asset (but still not meeting stated production targets), and just months after an announcement that the company would IPO the asset in Canada, the company announced its sale.
This is only the latest example of a string of announcements that have kept analysts and
investors guessing about what the Board will do next. The sale of such a core asset cast
uncertainty about the sustainability of the company’s profit and cash flow, and in particular
where near term upside will come from. We need to question is this the best deal for shareholders or something rushed into in order to impress shareholders before February 15.
Sale of Spearfish means Board change is even more critical
The new Board must:
Ensure Molopo shareholders are receiving the best possible value for Spearfish. The current
board is proposing to sell what has been the company’s star asset and replacing any upside
basically with cash .It is therefore critical to have a clear strategy where those funds will be
deployed.
The Board’s failure to successfully implement and deliver on publicly announced goals has cost the company credibility. Disappointing the market has become the norm, rather than the exception and there is always an excuse as to why things did not happen when they were promised.
For instance, since January 2008 shareholders have heard much about the potential of the Quebec shale gas assets, yet scant progress has been made to add value to these assets. Despite advice on more than one occasion that drilling would commence, nothing has been achieved.
Proposal for Change
If elected, the new Directors intend to transform Molopo from a resource accumulator to a company that is focussed on getting back to basics, ensuring the company’s resources are not spread too thin and delivering shareholder value.
The immediate plans of the proposed new Directors include the following:
• Ensure appropriate technical ability is retained at management level. It is understood that a critical senior management position is soon to become vacant, and the restoration of technical capability to the management team will be an urgent focus for the Board,
• Portfolio review to critically assess and prioritise Molopo’s assets and development plans, taking into consideration realistic resource constraints. Molopo has insufficient scale to focus on too many projects at one time.
• Consolidate technical knowledge and support to promote operating excellence. This will be done through introduction of a functional based organisation structure, as opposed to a geographic structure,
• Review of opportunities to improve the cost profile of production, stripping out costs and delivering results within tightly managed time frames,
• Review of non‐core spending,
• Re‐engagement with shareholders and improve two‐way communication with shareholders,
• Ensuring that the management team is focussed on delivering individual projects free from the
distraction from new corporate acquisitions and prospects.
• Be clear and transparent with the market about what it is doing – the Board in proposing an IPO in November made no mention of a trade sale.
• Focus on the development of the Canadian shale gas with an immediate drilling programme
The Proposed Candidates
IT IS CRITICAL THAT BOTH CANDIDATES ARE ELECTED TO THE BOARD TO ENSURE THAT BOARD RENEWAL IS EFFECTIVE. THE REMOVAL OF BEARD AND HOBDAY IS ALSO VITAL.
Both Greg Lewin and Max Beck are experienced businessmen with an established track record of
achievement, and they will make things happen.
Greg Lewin is a 30 year veteran of the international oil and gas industry, returning to Australia after a long and productive career as a senior executive with the Shell Group. Greg’s recent roles within the Shell Group include Executive Vice President of Shell Downstream, and President of Shell Global Solutions.
Greg’s career has spanned all aspects of the oil and gas business, including upstream and downstream development. In the late 1990s, he served four years on Shell’s Gas and Power Business Committee – the senior executive body responsible for commercialisation of Shell’s gas and inter‐related oil resources.
Greg has previous Board experience gained through his position as non‐executive Director of Sasol Limited, a global energy and chemicals company.
If elected, Greg intends to make himself available for nomination to the position of Chairman.
He will bring a fresh perspective, backed by years of international experience, and a sense of urgency to the task of commercialising and delivering value from Molopo’s asset portfolio. He has a proven track record and hands on experience in the critical decision making that will convert Molopo’s potential into value.
Max Beck AM has over 40 years of business experience. Max founded the Becton Property Group which he transformed from a small, Melbourne‐based property development and construction business into a national, diversified development and construction group before his retirement. Max proved his ability to generate wealth for himself and many others along the way.
Max will bring a strong commercial perspective and common sense approach to the Board. He is a team builder and fosters a sense of urgency and accountability for on‐time and on‐budget project delivery. He is a significant shareholder in Molopo and is determined to see the value of the company reflected in the share price. Max Beck says, “My interests are the same as all shareholders. I want to see the real value in the share price. My intention is to keep decision making focussed on the shareholders’ interests”.
It is intended Max Beck’s tenure on the Board will be limited, but he will be there while the change in corporate focus is underway. Max is keen to ensure that Board composition be reviewed at an appropriate time to ensure it has the right balance of capability and experience for the company’s needs going forward. He would consider endorsing local and international candidates in place of his own position in the future.
Vote for Change
We encourage all shareholders to vote FOR ALL of the resolutions.
Voting for only some of the resolutions will not drive the change required.
You can do this by:
• Voting in person at the General Meeting to be held at 10am on Tuesday 15 February 2011 at The Grand Ballroom, The Hotel Windsor, 111 Spring Street, Melbourne,
• Completing the proxy form and faxing or posting it to Molopo Energy’s share registry, making sure to put a cross in the boxes marked “FOR”,
• Proxy Voting online at www.linkmarketservices.com.au and following the prompts,
• Appointing a proxy who will vote on your behalf at the meeting. This requires you to complete only Steps 1 and 3 on the proxy form. Beck Corporation, one of the requisitioning parties, has nominated Glenn Ross as proxy. If you want to vote FOR the resolutions, write the name GLENN ROSS in the box (Step 1), sign (Step 3) then send to Link Market Services by mail or fax.
Please note that proxy forms must be received by Molopo Energy’s share registry by no later than 10am Melbourne time on 13 February 2011. Please note that this date is a Sunday, therefore
SEND IN YOUR FORM BEFORE FRIDAY 11TH FEBRUARY 2011, OR VOTE ONLINE.
If you have misplaced your proxy form, or would like a new one, please contact Link Market Services on 1800 285 677 or +61‐2‐8280 7472.
If you have any questions in relation to the resolutions to be considered at the General Meeting, please contact the Requisitioners’ Information line on 1800 623 855 or +61 2 8256 3375 between 9am ‐ 5pm (AEDST time) Monday to Friday.
IT’S ALL ABOUT SHAREHOLDER VALUE
VOTE “FOR” ALL RESOLUTIONS BY FEBRUARY 11.
They got the day wrong - the meeting is tomorrow - Tuesday.
From the Rear Window section of the afr.
Molopo showdown looms
The chief executive of oil and gas company Molopo Energy Stephen Mitchell is going to need all of his political skills on Wednesday in Melbourne, when a meeting is held on whether to vote out two existing board members and replace them with property developer Max Beck and his hand-picked fellow challenger Greg Lewin.
Beck and a few other cashed-up shareholders including billionaires bruce Mathieson and Boris Liberman, Fairfax Media chairman Roger Corbett and Sunland Group chairman Terry Jackman - aren't happy with Molopo's streategy and want chairman Donald Beard and director David Hobday out.
The two parties have been locked in a war of words in recent weeks, with Mitchell - a long time Liberal Party supporter who failed in a pre-selection bid for the Victorian federal seat of Wannon in 2009 - firing off an email last week to major shareholders urging them to back the incumbents. With the vote expected to be close, we wonder what Mitchell will do should the rebel shareholders pull off a victory.
MOLOPO ENERGY LIMITED
ABN 79 003 152 154
ASX ANNOUNCEMENT / MEDIA RELEASE 3 January 2012
DECEMBER 2011 OPERATIONAL UPDATE Completion operations begin in Texas and second Bakken well commences production
Highlights from Molopo’s drilling activities during December 2011 include:
Bakken, Canada
• The Roche Percee 16-34 well continues to be a very strong producer with a production rate for its second month of approximately 530 bopd (light, sweet crude, gross field estimated average rate).
• The Roche Percee 16-26 well was drilled and completed. The well is currently on clean-up after fraccing. Initial oil flow rates indicate it is likely to be a good producer.
• Taylorton 12-1 was drilled horizontally to a Total Depth (TD) of 3,604 m (measured depth) during December. The well is awaiting completion.
Wolfcamp, USA
• All three Wolfcamp wells have been successfully drilled horizontally with lateral lengths of ~ 4,200ft (1,280 m). Completion operations began at the end of December.
Wish I sold all of my SSN(round above post) and switched to MPO going forward I really like the look of the massive self fund of drilling a new well per month at wolfcamp Texas.....Qlds assets likely close to a sale ....should push cash above current market value
trying buy up as I move away from SSN :(
Molopo Energy believes it already has a company-making asset in the Wolfcamp acreage in West Texas, but it won’t say no to another.
The ASX-listed oil company is in “soft discussions” on a number of possible acquisition opportunities, although in the first quarter of the year it rejected as many as 15 proposals, said Tim Granger, Molopo’s Calgary-based chief executive officer and managing director.
“We are scouting around,” Mr. Granger said in an interview between meeting Australia-based investors and analysts, adding the company wasn’t about to rush into a deal.
Prospective targets must be in North America and in oil, and would have to compete with the scale of the Wolfcamp assets, he said.
Mr. Granger took on the role of CEO in January in a move that emphasized the company’s shift in focus to the U.S. and Canada. The company’s Australian assets are currently on the block, and Molopo’s board is keen to explore a secondary listing in North America, possibly on the Toronto stock exchange.
Molopo in April lifted its capital investment program for this year to 98 million Australian dollars (US$98.5 million) from a previous estimate of just A$36 million, and said it was aiming to produce 2,300 barrels of oil equivalent per day by the end of December from 215 barrels a day in the first quarter. The company has contracted a rig in Texas for a year to support an expanded drilling program and six new wells in the Permian Basin, and Mr. Granger said the focus for the company is on continued strong drill results.
In Australia, there has been a lot of “tire kicking” of Molopo’s coal-bed methane assets in Queensland’s Bowen Basin, but the number of serious suitors has been narrowed down and negotiations continue. “We’ve got the right players in the room now,” Mr. Granger said.
Molopo in December extended the formal sales process for the assets, and at the time said it expected negotiations to be completed in the first quarter of 2012. Mr. Granger said there is no pressure to sell, since the North American exploration and development plans will be funded from cash reserves that should leave the company with a cash balance of roughly A$25 million at the end of the year.
The company has been extending its exploration holdings in the Bakken shale formation in Saskatchewan and the Permian Basin, and in April agreed to buy its partner’s 22% interest in the Fiesta project for US$9 million to give it full control and take its holdings to about 25,000 acres in the Permian.
Molopo also is sitting with roughly 1.4 million acres in Quebec, which Mr. Granger said is essentially an option on gas while is development is frozen under a provincial moratorium on shale development.
BRR presentation 22nd june
http://www.brrmedia.com/event/98803/...rector-and-ceo
Another good shift north today ,which is very positive when you think about the tax-loss selling many other that have been down alot over the last 12months