MOLOPO AUSTRALIA LIMITEDABN 79 003 152 154Registered OfficeLevel...

MOLOPO AUSTRALIA LIMITED
ABN 79 003 152 154
Registered Office
Level 14, 31 Queen Street, Melbourne, Vic. 3000, Australia
GPO Box 223, Melbourne, Vic. 3001, Australia
Telephone: (61 3) 9618 8722 Facsimile: (61 3) 9620 2804
Website: www.molopo.com.au Email: [email protected]
NSW Office:
Suite 1006, Level 10, 50 Clarence Street, Sydney, NSW, 2000, Australia
GPO Box 7075, Sydney, NSW, 2001, Australia
Telephone: (61 2) 9290 2267 Facsimile: (61 2) 9290 2099
MEDIA RELEASE
12th July 2007
MOLOPO COMMENCES EXPLORATION IN SOUTH AFRICA
Molopo’s wholly owned subsidiary, Highland Exploration & Production Pty Ltd (Highland), has commenced the work programme in South Africa following award in May 2007 of the petroleum exploration rights.
The current field programme includes the identification of additional boreholes that are currently, or have in the past, emitted gas in the Free State and Mpumalanga lease areas held by Molopo.
Molopo has already identified six gas emitting mineral exploration boreholes that are collectively flowing at over 1,500,000 cubic feet of gas per day. These boreholes have been flowing for several decades. Many abandoned bores that originally flowed gas but were capped because of perceived risk are now being located by the Company beneath a cover of soil or vegetation. Where conditions permit, some of the more prolific gas producers may be reopened.
The programme also involves an extensive soil geochemistry survey to identify gas microseepages in the Free State lease area. This work commenced in late June 2007 and initial results confirm strong methane anomalies corresponding to suspected gas-prone trends. In parallel with this survey, magnetometer traverses are being conducted across crustal fracture zones. These linear zones appear to be conduits for gas migration, and therefore potential exploration targets for follow-up drilling.
Molopo’s leases overlie Witwatersrand strata of the Free State Gold Field where underground gas emissions approximately one thousand metres below surface are an ongoing mine hazard. This underground gas has been analysed in detail, and shows unique isotopic composition.
Results of the regional surveys currently underway coupled with the gas analyses will assist Molopo in designing a drilling programme to develop this gas resource. Potential gas markets and utilization options are being reviewed concurrently.
Molopo recently announced that it had increased its interest in the 250,000 hectares (625,000 acres or 2,500 sq km) of Exploration Rights to 100% after their initial award in May. The exploration acreage comprises two areas, the Free State with 500,000 acres and Mpumalanga with 125,000 acres.
Issued by: Molopo Australia Ltd
For further information contact: Stephen Mitchell MD 03 9618-8722
Ric Sotelo CFO 03 9618-8722
Molopo Australia Limited is an ASX listed gas producer focused on the development of coalbed methane and other on-shore gas projects. Molopo holds a 25% interest in several gas fields located in the Bowen Basin, Queensland, a 30% interest in CBM operations located in the Gloucester Basin (NSW), a 50% interest is a US gas project, a 50% interest in two permits in the Clarence Moreton Basin, NSW, an interest in the Liulin CBM project in China, and a 100% interest in two South African projects covering 250,000 hectares.