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DRILLING STARTS ON THIRD GLOUCESTER BASIN EXPLORATION HOLE

Drilling has commenced in Waukivory 01, the third of four part-cored coal bed methane (CBM) exploration holes, planned as part of 13 holes in the expanded Phase II Gloucester Basin appraisal programme.
Waukivory 01 spudded on 2nd August to assess the CBM potential in the northern portion of the Gloucester Basin in PEL 285. The current progress depth is approximately 111m, with a proposed total depth of 1,000m. The hole is designed to test the depth, thickness and coal and gas characteristics of the coal seams in the Gloucester Coal Measures, and is specifically located to test the CBM potential of coal seams within the Craven Subgroup and underlying Avon Subgroup.
Waukivory 01 is located along strike and approximately 5 km to the north of the Stratford Prospect, where this sequence was intersected by nine previous CBM cored holes drilled from 1993 to 1997. The Stratford Prospect has an estimated gas-in-place resource of 90PJ within 5 square kilometres.
The Gloucester Basin permit is located approximately 100km north of Newcastle, where gas prices could exceed other major east coast markets such as Sydney and Brisbane. The permit covers an area of 1,050 square kilometres, with over 200 square kilometres of prospective coal measure sequence.
Molopo has a 30% interest in the Permit. Its joint venture partner in the Gloucester project is Lucas Energy Pty Ltd (70%), which is also the project’s Operator.