Everything but what we actually want to hear about........... Don't think it will improve the SP!!
Molopo Energy Limited ("Molopo" ASX:MPO) is pleased to announce that it has completed the acquisition of a ~1,400 acre land position in the Permian Basin, West Texas, USA on a 100% working interest basis. The acquired lands are some distance to the north of Molopo’s existing 25,000 acre Fiesta project, and adjacent to third party owned lands which have shown excellent initial production rates from horizontal wells in the Wolfcamp interval. There is no requirement to drill on the lands until late 2013. However, Molopo plans to drill two short (3,500 feet) horizontal wells in the first half of 2012, with drilling costs expected to be in the order of $5.5 million per well. There is an option for Molopo’s business partner in that region (a private Texas Exploration and Production company) to back in for a 20% working interest in this acreage following full payout of Molopo’s project-related costs. This would reduce Molopo’s continuing working interest to 80% from that point on.
In addition to the Permian Basin acquisitions, Molopo has also added some 1,000 acres (100% working interest) to its Bakken acreage in Saskatchewan during the last few months. The total costs of the recent acquisitions in the Bakken and Wolfcamp plays have been approximately $6.4 million.
MPO Price at posting:
60.0¢ Sentiment: None Disclosure: Held
