signs gas sales agreement with anglo coal

MOLOPO AUSTRALIA LIMITED
ABN 79 003 152 154
Registered Office
Level 14, 31 Queen Street, Melbourne, Vic. 3000, Australia
GPO Box 223, Melbourne, Vic. 3001, Australia
Telephone: (61 3) 9618 8722 Facsimile: (61 3) 9620 2804
Website: www.molopo.com.au Email: [email protected]
NSW Office:
Suite 1006, Level 10, 50 Clarence Street, Sydney, NSW, 2000, Australia
GPO Box 7075, Sydney, NSW, 2001, Australia
Telephone: (61 2) 9290 2267 Facsimile: (61 2) 9290 2099
MEDIA RELEASE
MOLOPO SIGNS GAS SALES AGREEMENT WITH ANGLO COAL
4 April 2007
Molopo Australia Limited announces that it has signed a gas sales agreement with Dawson Sales Pty Ltd (“Dawson”), a company owned by Anglo Coal (Dawson) Limited and Mitsui Moura Investment Pty Ltd.
The terms of the agreement provide for Molopo and its partner Helm Energy Australia LLC to sell to Dawson up to 6 TJ/D of coal bed methane (“CBM”) gas produced by from the Mungi Gas Field in Queensland’s Bowen Basin.
The agreement is retroactive to January 1, 2007 and carries a term of two years. It supplements Molopo’s contract to sell smaller volumes of gas to Queensland Cotton Corporation until 2009.
The Mungi gas field is currently producing 1.6 TJ/D. Molopo has advanced preparations to drill up to three new horizontal wells at Mungi, the production from which will be sold to Dawson under the new agreement.
Molopo will have a 100% interest in the new wells, which will be drilled under the Sole Risk provisions of the joint venture agreement. Should drilling contract negotiations be successful, it is hoped that the drilling will commence at Mungi in about two months.
An independent reserve report commissioned by Molopo credited the Mungi Gas Field with 1P Reserves of 21PJ, 2P Reserves of 58PJ and 3P Reserves of 151PJ.
Interest holders in Mungi are Anglo Coal (Dawson) Ltd (25.5%), Mitsui Coal Holdings Pty Ltd (24.5%), Molopo Australia Limited (25%) and Helm Energy-Australia LLC (25%).
Issued by: Molopo Australia Ltd
For further information contact: Ric Sotelo CFO
03 9618 8722
or
Stephen Mitchell
03 9618 8722
Molopo Australia Limited is an ASX listed gas producer focused primarily on the development of coalbed methane. Molopo holds a 25% interest in several gas fields located in the Bowen Basin, Queensland, a 30% interest in CBM operations located in the Gloucester Basin (NSW), a 50% interest is a US gas project, a 100% interest in two permits in the Clarence Moreton Basin (NSW) and an interest in the Liulin CBM project in China.