As we all secretly and some of us vocally suspectedMolopo Energy...

As we all secretly and some of us vocally suspected

Molopo Energy Limited (‘Molopo’) (ASX:MPO) committed to update the market on the status of the proposed monetisation of its coal bed methane (CBM) assets in the Bowen Basin, Queensland by the end of CY2011.
The Company advises that negotiations for the sale of the assets are continuing and the formal sale process has been extended to ensure delivery of the best value outcome for shareholders. These negotiations are expected to be completed in the first quarter of 2012.
Molopo Chairman, Mr Greg Lewin, stated that, notwithstanding the extended sale process, “Molopo’s financial position remains strong and its North American 2012 exploration and development program will be fully funded from existing cash reserves and marketable securities.”
Molopo commenced a trade sale process for its Queensland CBM assets as one of the outcomes of its strategic review in April 2011. The Company has consistently stated that the objective of the sale process is to achieve the best value from these assets for shareholders. The Board remains committed to this objective and the process may or may not result in a proposal being accepted. Limited field activities will be undertaken while this process continues.
In accordance with its legal obligations, while the sale process is ongoing, Molopo’s on-market share buy-back programme will remain suspended.
The company will provide further market updates in accordance with its disclosure obligations.