With respect, there is nothing in the article that suggests Molopo has made any specific statements about LNG exports from Canada. The article simply states that "VAT News has also learned that a company is exploring this avenue."
Plus, feedstock for LNG export could ultimately come from a number of sources, not just MPO's projects. So this is potentially an interesting development, if it is true/accurate.
In any case, you are right in that only news of good drilling results will provide the necessary catalyst for sustainable value creation and share price appreciation.
I'm expecting news on:
- completion of WCL's Qld transactions, and subsequent completion of MPO's Qld transaction - drilling progress @ Mungi - drilling progress @ Spearfish - planning progress @ Quebec - other news (eg Qld power, South Africa, Bakken oil...)
With Quebec drilling not expected until later in the year (is this correct?), it seems to me that results in the Canadian oil projects and in Qld will provide the nearest short-term catalysts.
Arguably positive results at the Canadian oil projects are the most important short-term as:
- they are the main consumers of cash at the moment. - they are expected to provide a strong cash flow that will help cash flow drilling of the Canadian gas and may enable MPO to go it alone in the short-term - will validate the strategy, the prices paid for these projects and the delay of drilling in Quebec (that was due to happen late last year but has effectively been deferred for 12 months).
MPO Price at posting:
$1.03 Sentiment: LT Buy Disclosure: Held
