Molopo blames H1 loss on drop in share of gas output
Thursday, 1 March 2007
AUSTRALIAN coal seam methane player Molopo Australia has posted a 20% greater loss in first half net profit compared to the previous corresponding period.
Molopo's CSM exploration activities.
The Melbourne-based company yesterday reported a net loss of $1.5 million for the six months to December 31, 2006.
Molopo said the majority of the loss arose from a 34% decrease in the company's share of gas production, from 135 terajoules to 89TJ.
It said this reflected the natural decline in well production and delays in workovers.
But it said the workovers were completed in January and have since resulted in a "substantial" increase in daily production after the wells stabilised.
The company's revenue also slid in the first half, dropping to $265,111, some 44% or $207,320, lower than the previous corresponding period.
Molopo has a strong portfolio of CSM plays in Queensland and New South Wales and diversified its assets outside Australia to include CSM, conventional gas and shale gas prospects in the US Appalachian Basin, as well as consolidating an early CSM position in China's Shanxi Province.
The company is also a frontrunner in moves to explore an intriguing natural gas/helium play in the Witwatersrand gold field areas east and south of Johannesburg, South Africa.
It has applied for exploration permits there and said these have been accepted but petroleum licences have never been granted onshore South Africa and the authorities are still working on technical details.
The company expects to get formal approval by mid-year.
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