molopo in production breakthrouth at mungi gas fie

MOLOPO IN PRODUCTION BREAKTHROUTH AT MUNGI GAS FIELD IN
QUEENSLAND
Molopo Australia Limited announces strong gas production results from its Mungi 2 lateral completion well at the
Mungi coalbed methane (“CBM”) gas field in Queensland.
Mungi 2 is currently producing at a stable rate of around 250,000cf/d (cubic feet per day) from only one out of a
possible five coal seams. This contrasts favourably with the existing nine fracced wells at Mungi which produce less
than Mungi 2 from four to five seams.
As a consequence of these encouraging results, Molopo is proposing to drill additional lateral wells in the area with the
first expected to commence during the current quarter.
“The Mungi 2 production profile represents a significant breakthrough in completion technologies at the Mungi Field.
This breakthrough could translate into significantly higher production and recovery rates per well and lower field
development costs, which together would have a dramatic impact on the economics of the Mungi/Harcourt/Bindaree
areas” Molopo’s Managing Director, Mr. Stephen Mitchell, said today.
Mr Mitchell added that “a further encouraging aspect of this result is the fact that the Mungi 2 lateral well has shown a
steady increase in gas production over the past six months, and is not exhibiting any notable production decline typical
of the fracced wells at this stage”.
“This new multi-lateral well completion should represent a further marked improvement on well production profiles at
Mungi with possibly six times more coal accessed than the Mungi 2 well. This should ultimately result in significant
cost reductions for any given volume of coal drilled and completed”, he said.
The aim of the lateral programme is not only to fulfil current gas contracts, but importantly to permit a reserves upgrade
ahead of further field development as a consequence of the much greater gas recovery potential of lateral wells.
Currently, the Mungi field has independently accredited current total proven, probable and possible reserves of 56PJ of
which 26PJ are in the 2P (Proven & Probable) category.
The Mungi coalbed methane gas field is located in PL94 in the Bowen Basin, and is the closest CBM petroleum lease
(production licence) to the significant Gladstone industrial market.
Yours faithfully,
Rodney Watson
Company Secretary
Molopo Australia Limited is an ASX listed gas producer focused primarily on the development of coalbed methane.
Molopo holds a 25% interest in several gas fields located in the Bowen Basin, Queensland, a 25% interest in CBM
operations located in the Gloucester Basin (NSW), a 15% interest in two permits in the Clarence Moreton Basin (NSW)
and a 50% interest in the Liulin project in China.
Website: www.molopo.com.au Email: [email protected]
Address: GPO Box 223D, Melbourne, Victoria, Australia 3001