Molopo Directors said they are pleased with these interim results as production continues to increase as the wells dewater. Further production increases will also occur when five of the wells come back into production after workovers are completed. These five shut-in wells were producing approximately 1,500,000 cubic feet of gas/day.
"We are on track to commence our first gas sales next month when gas-processing facilities, including compression, are expected to be commissioned," Molopo's Managing Director, Mr. Stephen Mitchell, said.
"Meanwhile, more time is required before production stabilizes and long-term production rates can be estimated."
Of the 11 Mungi wells, Molopo has a 50% interest in five and a 25% interest in six of the wells. This currently gives Molopo an interest of nearly 38% in the gas produced.
"This is a very pleasing rate of growth in the development of our first gas production and it confirms our move from explorer to producer status, giving Queensland and Australia a new player in gas production."
The Company recently announced it had signed a Term Sheet with Origin's Energy's subsidiary for the sale of Molopo's anticipated share of gas from the Stage 1 development.
A final Gas sales agreement based on the term sheet is expected to be concluded this month.
The Mungi field is the closest gas production license to the burgeoning Gladstone industrial market.
Interest holders in the Mungi project are Oil Company of Australia (Moura) Pty Limited (50%), Molopo Australia Limited (25%) and Helm Energy-Australia LLC (25%).
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