repositioning for toronto listing?

http://www.businessinsider.com/four-small-cap-energy-stocks-to-watch-josh-young-2011-12

JY: In the past, I talked about a company called Molopo Energy Ltd. (MPO:ASX). It's an Australia-based oil and gas company with assets around the world, including in Canada and the U.S. There actually have been a number of positive developments since I last spoke about Molopo. First, it has a new CEO. The company hired the CEO from Compton Petroleum Corporation (CMT:TSX) who had been brought in to restructure Compton. Prior to that he recapitalized, repositioned and ran PrimeWest Energy for nine years before selling it to TAQA, a national oil company. I think that is a real positive. Bringing him in as CEO indicates the company is likely to list its stock on the Toronto Stock Exchange, and that the new CEO sees potential in Molopo's assets. Listing in Toronto should make it easier for Canadian and U.S. investors to value the assets and the company, and they may have a different take on it than the Australian investors that have been active in the stock to date.

I think it is also an indication that Molopo will be selling its Australian coal bed methane asset in the near-term. The company had previously talked about selling by the end of the year, which should generate a substantial amount of cash.

Molopo has been involved in one of the highest producing Canadian Bakken wells in southeast Saskatchewan. Legacy Oil & Gas Inc. (LEG:TSX) drilled the well and Molopo has a 25% working interest in it. The 30-day initial production rate was 335 barrels of oil a day (bpd) and is currently producing in excess of 600 bpd, which is very unusual. Typically these wells decline rapidly rather than incline. The company installed a pump to enhance the production from the well and it's working spectacularly well. Molopo has 50,000 net acres in the southeast Saskatchewan Bakken. The stock isn't getting credit for this. As Molopo drills additional wells there, it should be able to ramp its oil production from that area to potentially over 500 bpd by the end of 2012.

Molopo is also active in the Wolfcamp Shale play in the Permian Basin of West Texas, where it has just under 20,000 net acres. There have been a number of positive well results announced in that play recently. Approach Resources Inc. (AREX: NASDAQ) announced results on acreage immediately adjacent to Molopo's acreage in excess of prior well results in the area. There is a learning curve where the number of wells an operator has drilled in the area has a direct impact on the production from those wells. You can see it as the well results in the area continue to improve, which is very exciting for Molopo. The stock is trading as if it is still a very speculative early stage shale play. Yet, there are results from nearby wells that are indicative of a play working better than people expected and being among the more economic shale plays in the U.S.

TER: How does the production on these hold up? Does it tail off pretty quickly or stay fairly steady?

JY: It trails off quickly but in many cases these wells are generating initial production rates in excess of 500 bpd. The wells are cheaper than wells in the Bakken or in the Eagle Ford and end up being highly economic even after the production rates stabilize at anywhere from 100 to 300 bpd. Companies like EOG Resources, Inc. (EOG:NYSE), which has substantial Bakken and Eagle Ford acreage, are deploying an increasing amount of capital to the Wolfcamp area because they are becoming among the most economic wells in its portfolios.