mpo announcment...

US PROJECT UPDATE
The first test well in Molopo’s US project, Shannon Neal # 1, encountered gas shows in the Pennsylvanian
Allegheny sandstones in Mason County, West Virginia , but not sufficient for commercial production. The
well had previously been cased to a total depth of 306 meters. Two zones were perforated and tested and
produced formation water, with only minor indications of gas associated with one coal zone, which had
earlier provided a good gas show while drilling with air.
The sandstones targeted by this well represent only a very small part of the initial portfolio of energy assets
Molopo has accumulated in the USA.
Molopo will now focus on the primary target within the US gas assets, being the Devonian shale potential
in Mason County, with a view to drilling a pilot well later in the year. The Devonian shale wells produce
gas in the vicinity of Molopo’s leases. While these wells flow at relatively low rates, they were drilled
nearly 20 years ago at a time when the shale gas extraction technology was in its infancy.
With the explosion in gas shale extraction technologies in the US, Molopo has partnered with Dallas based
Republic Energy, one of the pioneers of the Barnett Shale play having participated in over 500 gas wells.
The joint venture parties will look at ways of increasing historical production rates by the application of
new proven technologies, including horizontal completion.
Gas in the vicinity of the US leases is currently being produced from the Ohio Shale zone. The various
target reservoirs represent a potential target resource for the joint venture of over 50 billion cubic feet.
The Mason County project is part of Molopo’s international diversification into the US, China
and South African markets. These complement the Australian producing and exploration interests
in Queensland and New South Wales.
Molopo holds a 50% working interest in 5,700 gross acres of rights to conventional gas with joint venture
participants Foree International LLC (10%) and Republic Energy (40%), both headquartered in Dallas,
Texas.
Issued by: Molopo Australia Ltd
For further information contact: Stephen Mitchell MD 03 9618-8722
Ric Sotelo CFO 03 9618-8722