Excellent find bello, cheers - that certainly puts some light on the situation and starts to explain how Fortune Oil got this deal - they have enormous bargaining power with their control of gas pipelines in the Shanxi province where Liulin is located. I can envisage how this negotiation would have unfolded. Fortune's commitment of $2.5 million (from their cashflow) is also a critical element of the deal. Without this money Molopo probably wouldn't have been able to continue it's exploration activities. For them to raise that sort of money when their sp was less than 5c (which it was at that time) would have been too dilutionary and not good for shareholders.
I'm OK with the deal and don't feel we have any reason to doubt the integrity and/or ability of MPO directors and execs with regard to this deal.
Just to clarify some of my calcs from my first post (as it seems to have become a little clouded).
A simpler way to calculate how many PJ this resource estimate equates to is to use the conversion of: 1 bcf = 1.05 PJ (bcf = billion cubic feet) ie. 1.4 bcf = 1417 PJ
This is in fact higher than what I initially calculated and I trust this figure more than my earlier calc.
In any case - it all still looks very very good to me and I think this company could possibly be a major global player in this sector in a few years. I really hope they don't get taken over or all shareholders will lose the opportunity to be involved in the growth of a company with very strong foundations and fantastic long-term potential.
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
