Molopo Australia Limited (mpo)

[mark100]

Wilson HTM have increased their price target on MPO to $3.50 based on increased gas prices etc

[ananda77]

...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

[mark100]

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.

[JBmurc]

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??)

[JBmurc]

-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

[Footsie]

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

[JBmurc]

--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

[Phaedrus]

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.

[DTB]

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!

[JBmurc]

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

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.