The improved earnings result, compared with a loss of $0.26 million in the previous corresponding period, included revenue contributions totalling $3.0 million from the farm-out of half of Molopo's interest in the Bowen Basin licences in Queensland.

Molopo said today the farm-out revenues received in the latest December half were used to finance the first stage development of the Mungi Gas Field in Queensland, where sales are scheduled to commence within the next few days.

Approximately US$875,000 remains to be spent on Molopo's behalf at Mungi before the farm-out is completed. This remaining amount will be spent during the current March 2004 quarter.

Molopo had a free-carried interest of approximately A$6 million in the production test and early development program for the Bowen Basin interests as part of the company's US$5 million farm-out to Helm Energy of a 25% stake in the project.

Interests in ATP564P and the undeveloped northern sector of PL94 include Molopo (25%), OCA (50% and Operator) and Helm Energy-Australia LLC (25%).