MOLOPO ENERGY REPORTS RESULTSFOR HALF YEAR ENDED 31 DECEMBER...

MOLOPO ENERGY REPORTS RESULTS
FOR HALF YEAR ENDED 31 DECEMBER 2011
Molopo Energy Limited (“Molopo") (ASX: MPO) has reported a net loss before tax from continuing
operations of $7.3 million for the half year ended 31 December 2011. This compares with a net loss of
$7.7 million for the same period in the prior financial year.
Items of particular note for the six months ending 31 December 2011 include:
• 7 new wells were spudded and 2 wells commenced production in North American
Saskatchewan and Texas tenements
• Exploration expenditure of $29 million compared to $3 million in the June-December 2010
period (“pcp”)
• $1.3 million reduction in staffing and related costs vs pcp following the re-alignment of the
organisation with the Focused Growth Strategy
• Total revenue reduced to $0.5 million, reflecting no sales contribution from sold Spearfish
asset ($10.7m revenue in pcp), and a slight reduction in gas sales from Queensland CBM
• $1.2 million of oil sales was recognised (on an accruals basis) and credited against the capital
cost of the exploration wells, in accordance with accounting standards
• Loss before tax from continuing operations, excluding asset sale costs, of $6.6 million, a $1.1
million improvement on pcp
• Strong balance sheet with cash and equity investments of $110 million at end December
• Net assets per share up 24% to $0.93, compared to the same time last year
Commenting on the results, Mr Tim Granger, Chief Executive Officer, said “During the half year
Molopo Energy made significant progress towards the full implementation of the Company’s North
American exploration and development strategy, agreed as a key outcome of the April 2011 strategic review. We are focusing particularly on the continued de-risking of our Texas and Saskatchewan assets, targeting oil production of 700 bopd by the end of the 2012 calendar year.
“Initial exploration success in these acreages is indicative of significant upside and, following
settlement of the sale of our Legacy Oil & Gas shareholding earlier this month, we have significant
capital strength to pursue our development opportunities. In addition, we continue to assess acquisition opportunities to augment our asset base,” said Mr Granger.