Molopo flags acquisitions, spells out growth plans Thursday, 1 October 2009
MOLOPO Australia is well positioned for acquisitions and delivering on the potential value of its core assets after the company posted a $72.6 million profit after tax for the 2009 financial year.
Speaking to PetroleumNews.net, chief financial officer Anthony Bishop said the company had been looking at possible acquisitions for some time and would continue to assess opportunities as they arose.
“We can never rule out any opportunistic acquisitions but for the time being we are very much focused on our existing core assets,” he said.
“We are very much focused on several core areas, they being Queensland, Canada and South Africa.”
Bishop went on to say Molopo was also considering divesting its non-core assets such as the Liulin project in China and interests in two Clarence Moreton Basin permits in New South Wales.
“We have previously advised that we’re considering the approach to take with our non-core assets and have previously advised that we have appointed advisors to assist us in the regard.
“With the natural progression of the portfolio and high grading that naturally occurs over time, we do want to continue to view that portfolio as being quite flexible and divest those assets where we don’t think we can add as much value as in other parts of our portfolio.”
Forward Plans:
In the next 12 months, Molopo is aiming to have made a decision on the full field development of Mungi horizontal development trial in the Bowen Basin and will continue to appraise and test the Harcourt South and Timmy gas prospects.
In Canada, the company plans to advance detailed well planning, location permitting and rig-sourcing activities in preparation for the drilling of one vertical well in the Quebec Lowlands in the fourth quarter of 2009.
Molopo also aims to complete the interpretation of additional 2D seismic surveys currently underway in the Lyster and Pintendre areas, for drilling later in 2009 or early 2010.
Bishop told PNN the company would also strive to increase the production from its recently acquired Canadian Spearfish and Bakken oil plays to 400 barrels per day.
In South Africa, the company will complete an initial three-well exploration drilling program in Virginia and, subject to the results, continue drilling to upgrade gas reserves.
In Evander, activities involving data collection will continue as well as the measurement of existing gas flows and the completion of a core hole with gold miner Harmony Gold. The core hole will evaluate the Karoo Formation coal bed methane potential and also evaluate the conventional sandstone reservoirs.
Long-term opportunities in power generation and liquefied natural gas will also continue to be assessed.
As at June 30, 2009, Molopo had $109.5 million in cash.
MPO Price at posting:
$1.23 Sentiment: Hold Disclosure: Held
