Molopo Energy Limited (“Molopo”) is pleased to announce that it...

Molopo Energy Limited (“Molopo”) is pleased to announce that it has commenced drilling (‘spudded’) its Baggett 32 exploration well, the first well to be drilled in the Company’s Wolfcamp project. The Wolfcamp project comprises ~25,000 (gross) acres in the Permian Basin near Midland, West Texas. The spudding of Baggett 32 marks the beginning of an important new phase in Molopo’s North American drilling program for 2011, which commenced in August in the Company’s acreage in the Bakken, Saskatchewan, Canada. Baggett 32 is located in the north-west portion of Molopo’s land position. It will be drilled vertically to a depth of approximately 9,850ft and is expected to provide information on the Wolfcamp, Canyon Sands, and Ellenburger intervals. The primary target is the Upper Wolfcamp, at a depth of between 5,000 and 5,500ft. After coring and logging of the vertical well, the Company plans to drill a horizontal sidetrack.

Overall objectives for Baggett 32
? Evaluate for the presence of oil and gas from various intervals

? Test the Wolfcamp horizontal productivity

Indicative Timing
Molopo anticipates the well will take approximately 30 days to drill and case. Molopo is working with various service providers in the area to establish a firm date for commencement of completion activities.

Molopo’s CEO, Ian Gorman, welcomed the spudding of the first Wolfcamp well which is in line with the commitment made by Molopo at the time of acquisition of this land position in 2010. “Our exploration strategy continues to target significant stakes in tight oil opportunities early in their evolution,” Mr. Gorman said. “The Wolfcamp yields a light sweet oil that generally achieves WTI Cushing parity”. “This well is the first of three planned well locations on this acreage, all of which are expected to be drilled during this calendar year. We will be targeting relatively short simple horizontal wells in the first drilling phase with limited frac stages. Longer and more complex wells will be undertaken in 2012 if we demonstrate that we can successfully implement our horizontal drilling plans in this new play,” Mr. Gorman said.