This may have been posted . I read it at Topstocks and it was written by Baillieu energy analysts :
"Molopo Australia (MPO) In Brief Consolidates Bowen Basin interests....
MPO has agreed with its JV partner, Helm, to purchase the latter’s interests in existing CBM fields/production in the Bowen Basin. The consideration is a total $13m involving both cash ($6m) and shares (30m). The immediate impact, providing the deal goes ahead as planned (no pre-emption by Anglo or Mitsui) is to immediately add 80 Pj of 2P reserves to MPO; total 2P reserves 160 Pj. This is a significant addition and comes at a time when MPO is about to assess or upgrade its 2P reserves, especially in Mungi (2P 58 Pjs/3P 230 Pjs............ With the BHP/CBM team now firmly in the saddle, we would expect that the program to increase production from this area would accelerate, especially now MPO has a 50% interest. Mungi is already in production and the 2P reserves at the undeveloped Harcourt/Bindaree project appear likely to be tied back into the Mungi processing facilities. We expect that BHP Billiton will market its Chinese CBM project in July............. For us, the next company transforming event would be if MPO announced that the effective stranded 2P reserves at Lillyvale/Oak Park (247 Pjs, MPO share 123 Pjs) could be commercialised through a dedicated local power station. Today’s transaction clearly shows that MPO is on the front foot in terms of consolidating its core asset base. While employing its “A” team on advancing production."
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
