Molopo Australia Limited (mpo)

[JBmurc]

MPO up 10% today nicely throught it's 75 EMA strong break from the recent trend buyers see good value...

[Footsie]

Looks like you arent the only one on this.

I got a special email with research from one broker to BUY MPO.

[JBmurc]

Looks like you arent the only one on this.

I got a special email with research from one broker to BUY MPO.

no just one of the smart ones paying $1 ps

current SP $1.15 now up 15% or 4.5% today

[JBmurc]

--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

[Footsie]

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.

[JBmurc]

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.

Yeah takeover very likely IMHO better pay-up with $3+ of value in MPO

[JBmurc]

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.

[soulman]

Is this the start or range bound. Still holding and pondering.

Chart are still uptrending. Good timing JB.

[JBmurc]

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.

[ananda77]

...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