reserves upgrade to harcourt south

MOLOPO AUSTRALIA LIMITED

MEDIA RELEASE 9th

• Independently Certified 2P Reserves increase to 37 Bscf at 2P and 318 Bscf at 3P. July 2008 MOLOPO ANNOUNCES RESERVES UPGRADE TO HARCOURT SOUTH IN QUEENSLAND
• Greater Mungi/Harcourt Reserves now 95 Bscf at 2P and 469 Bscf at 3P.
• Scope to further double revised 3P Reserves with Harcourt North prospect.
• Greater Harcourt Area Gas-in-Place estimated at 2500 Bscf
• Harcourt area ideally located on top of Wallumbilla to Gladstone Pipeline for gas commercialisation.
Molopo Australia Ltd is pleased to announce an upgrade of the reserves of the Harcourt Area located in its Queensland Acreage ATP-564P. Harcourt reserves have increased to 37 Bscf at 2P and 318 Bscf at 3P and total Mungi/Harcourt Area reserves have increased to 95 Bscf at 2P and 469 Bscf at 3P.
Harcourt South Reserve Certainty Level
Previous Reserves Bscf (Billion standard cubic feet)
Revised Reserves Bscf (Billion standard cubic feet)
Increase
2P
26
37
42%
3P
66
318
482%
Note 1 Bscf appox 1.035 PJ The original certification covered the Greater Harcourt Area which Molopo now splits into two separate CBM fields, Harcourt South and Harcourt North. The revised certification has been completed by Netherland, Sewell and Associates Inc (NSAI) a Dallas based company which conducts reserves certification exercises for both conventional hydrocarbons and un-conventional gas such as CBM. NSAI have extensive experience and have provided independent reserves certification for most of the current CSM projects in Australia.
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
NSAI also estimates a gross Gas-in-Place of approximately 1100 Bscf for Harcourt South. Molopo carries a similar estimate for Harcourt South and estimates a Gas-in-Place of at least 1400 Bscf for Harcourt North, giving a Greater Harcourt Area Gas-in-place of at least 2500 Bscf. A further announcement on the gas-in-place and recovery potential of the overall Queensland acreage will be made shortly.
Molopo estimates a gross 3C contingent resource for Harcourt North of approximately 400 Bscf. Further appraisal and pilot testing of Harcourt North is required to demonstrate reserves to a certifiable standard. Molopo intends to pursue this certification over the next 12-18 months. The two Harcourt area fields are ideally located adjacent to the Wallumbilla to Gladstone Pipeline to provide gas supply either to local industrial or power users as well as to major industrial usage in the rapidly expanding Gladstone area. The reserves upgrade is based on the use of horizontal wells as a development method. This technology is currently being demonstrated by Molopo in its sole risk development trials at the adjacent Mungi field from which Molopo already produces gas via existing vertical fracced and horizontal wells. This approach has significant scope to enhance the recovery and commerciality of the Mungi/Harcourt area as demonstrated by the large increase in 3P reserves.
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
The certification exercise limited commercial reserves to the 300-700m depth interval and to those seams thick enough for horizontal drilling. With the successful implementation of the new horizontal well approach at Mungi and as Queensland gas prices continue to mature to a level more consistent with global parity the depth cut-off can be increased and further reserves potential will exist. Interest holders in the acreage are Molopo Australia 50%, Anglo Coal 25.5% and Mitsui 24.5%. Issued by: Molopo Australia Limited For further information contact: Ian Gorman COO 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 50% 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 100% interest in a shale gas project in eastern Canada, 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.