I am posting you 2 reports for you to ponder upon. They make slightly more interesting reading than all the obituaries that are currently being posted. Hope they are helpful.
Firstly, a report just out about a new coalbed methane field that has just been found in Hancheng. Hancheng is close to Molopo's Liulin Block
The second report is just a posting from Molopo's previous reports, so that you can compare it with Report 1 and try and figure out what Molopo may or may not have in China
REPORT ONE... Just out 2 hours ago
Published : Thu, 27 Sep 2007 04:57 By : Agencies Print this Story
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BEIJING (XFN-ASIA) - China United Coalbed Methane Corp has found a coal-bed methane (CBM) field in Hancheng, northwestern China's Shaanxi province, with proven reserves of 5 bln cubic meters, the official Xinhua news agency reported.
Sun Maoyuan, general manager of China United Coalbed, was cited as saying that the Hancheng field has technical recoverable reserves of 2.51 bln cubic meters with economic recoverable reserves of 2.26 bln cubic meters.
The field is expected to have an annual capacity of 150 mln cubic meters, Sun added.
In April, China United Coalbed signed a production sharing contract with Hong Kong's Longmen Hui Cheng Investment Co Ltd covering joint exploration for coalbed methane in the Hancheng block.
China's coalbed methane output is expected to reach 10 bln cubic meters by 2010 and 40 bln cubic meters by 2020.
CNPC has a 50 pct share in China United Coalbed Methane Corp, which was set up in 1996 to produce natural gas from coal.
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REPORT 2 TAKEN FROM MOLOPO HOMESITE REGARDING THE LIULIN BLOCK...This is old news, but is posted so that you can compare Molopo's prospects in light of the above report.
China – Liulin, Shanxi Province
In April 2006, Molopo announced that it has entered into a conditional agreement with a London Stock Exchange listed company, Fortune Oil Plc, to fund the next stage of appraisal at its large CBM project in China.
Under the Agreement, Fortune Oil will be entitled to 60% of Molopo’s interest in the Liulin project by contributing US$2.5million to the project.
The bulk of the funding is expected to be applied to production testing, aimed at identifying a stimulation technique that could be applied to the estimated 700 to 800 BCF (740-845PJ) gas resource at Liulin.
Fortune Oil has considerable expertise in oil and gas investments and operations in China which, when combined with Molopo’s upstream expertise in CBM, should help unlock the massive gas resource at Liulin.
The transaction is conditional upon final documentation being executed, with a provisional work programme that contemplates three production test wells and two cored appraisal wells.
On completion, Molopo will have a 40% shareholding in a special purpose joint venture company with Fortune Oil. Subsequent to year end, the Chinese Ministry of Commerce approved the transfer of the foreign contractor rights in the Liulin block Production Sharing Contract for the CBM to Fortune Liulin Gas Company Limited and the PSC exploration period has been extended 2 more years.
The Liulin Block is geologically one of the best CBM blocks in China, with many attractive characteristics for a commercial project such as high gas contents, thick coal and high permeability.
The Liulin Contract Area is situated in the centre of the Hedong Coalfield in the Ordos Basin, a predominantly Permo-Carboniferous and Jurassic sedimentary basin located in north central China. The Hedong Coalfield is located in Shanxi Province on the eastern margin of the Ordos Basin, approximately 500km from Beijing.
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
