News: Molopo Energy selling Texas oil and gas asset for US$1M

Molopo Energy (ASX:MPO) has entered into an agreement to sell its Fiesta oil and gas assets in Crockett County, Texas, for US$1 million (A$1.2 million).

The sale of the assets will result in a material reduction of the company’s overheads as the costs associated with managing and reporting these operations will no longer be required.

While this is the company’s only producing assets, they were not providing positive cash flow and were not part of its go forward plan.

There are several costly capital expenditure programs that would need to have been undertaken had the company continued to own the properties.

The transaction, which is subject to customary due diligence, is expected to close by the end of January 2015.

Molopo had US$58.5 million in cash as at 30th September 2014.

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