Molopo's sales revenue from the Mungi coalbed methane ("CBM”) field in Queensland over the half year to 31st December 2006 was $182,069, compared to sales revenue of $399,937 during the previous corresponding period. The reduced revenue was due to • Reduced production from the Mungi CBM field ($110,000); and • Acceptance by Origin of field production levels, thereby obviating the need for Molopo to buy third party gas for resale ($128,613). Molopo's share of gas production from Mungi for the half year was 89.3 terajoules ("TJ"), with 74.1TJ delivered to Origin Energy.
"Gas sales to Anglo commenced on 1'' January, 2007, after the Gas Sales Agreement with Origin expired on 3 1st December. Under provisional sales arrangements, Molopo and Helm will sell up to 6 TJ/day to Anglo. Field production has doubled in January 2007, following completion of a well workover programme in December 2006. All of the workover wells have now returned to production. The workover campaign comprised pump and tubing replacements, well cleanouts and electrical repairs to surface equipment on seven of the twelve producing wells in the Mungi Gas Field. The resultant increase in total field production rate was from a low of 911Mscf/d in October 2006 to 2,057Mscf/d at end of December 2006."
So, they do have a revenue stream, not quite enough to cover their current losses, but given the options go through, and the increased production above, they should have enough money to continue with exploration using the 3 amigo's.
MPO Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
