Enjoying the shift upwards in MPO 45.5c looks like great buy now
AUGUST 2012 OPERATIONAL UPDATE FIRST BARNHART WELL MEETS EXPECTATIONS
Highlights
Texas, USA
• Preliminary results from Molopo’s first well in the Barnhart project area, Linthicum Washington 36-2H, were announced on 30 August and met expectations. The well produced oil more quickly than offset wells in the area and has shown encouraging oil rates.
• Molopo has spudded its second Barnhart well at Linthicum Washington 36-1H and is drilling ahead at approximately 8,800 feet.
• Completion is underway on Molopo’s Baggett 16-1H well in the Fiesta Project area, with flow back expected in early to mid-September.
• Baggett 40-2H well in Fiesta (8,234 foot lateral) was drilled and completion is scheduled to commence during the second week of September.
Saskatchewan, Canada
• The Roche Percee 9-26 well (Molopo 25% net interest) completed and is currently producing approximately 180 bopd gross (barrels of oil per day).
Company Production
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Corporate sales in July 2012 were 285 boepd (barrels of oil equivalent per day) compared to 400 boepd during June. The difference is attributable to higher than anticipated decline rates in Saskatchewan and lower than expected performance from the initial three producing wells in the Fiesta Project in Texas. The initial Fiesta wells were drilled with a shorter radius and were completed using techniques and materials that did not prove optimal for the characteristics of the well. This has been modified in the drilling and completing of the subsequent wells in the Fiesta area, and improvements will continue to be made as additional data from the wells becomes available.
Sales for July by product were as follows: crude oil: 81%; natural gas liquids: 8%; and natural gas: 11%.
Queensland Asset Divestment
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Molopo announced on 1 August 2012 that it had entered into an agreement for the sale of its Queensland Coal Bed Methane assets to a wholly owned subsidiary of PetroChina International Investment Company Limited for a total consideration of $41 million, plus a $2.4 million adjustment for working capital. Closing is subject to Australian and Chinese regulatory review, and is expected to occur by early November.
Outlook
• In Texas, the plan to drill one well per month is on track with Molopo’s dedicated contract drilling rig.
• Three additional wells have been licensed in Fiesta. In Barnhart, the Company is proceeding to license two wells.
currently MPO prime Permian land is valued at Zero
BHP Billiton digs deep for riches under Texas soil
The Australian Financial Review, 8 July 2013, Ben Potter
Suggestions have arisen that the South Midland section of the Permian Basin may be home to the second largest oil field in the world. According to Leonardo Maugeri of Harvard Kennedy School, the Basin could hold in excess of 50 billion barrels of recoverable oil. BHP is competing vigorously for a stake in the 22,270,000 hectare land.
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MPO asset ,Midland Basin, Texas, USA
Molopo has two project areas in the Permian basin of Texas: the 24,600 acre Fiesta project and the 1,400 acre Barnhart project. Both positions are in the Midland sub-basin of the Permian basin in West Texas and have potential for oil and gas production from multiple stacked pay zones. The current focus of the Company’s activity is on the emerging Wolfcamp shale oil play.