The $979,060 net profit after tax is Molopo's first profit and contrasts with a loss of $2.7 million for the previous financial year.

The profit was largely generated by the Company's A$9.6 million sale to Helm Energy-Australia LLC in April this year of Molopo's interests in Queensland's Bowen Basin coal bed methane (CBM) gas permits.

"The profit is welcome, particularly as only A$2.9 million of the sale proceeds from the Helm Energy agreement has been reflected as income in the year to 30 June, 2002," Molopo's Managing Director, Mr Stephen Mitchell, said today

"The remainder of the sale proceeds will be brought to account under Molopo's free-carried interest with Helm as that company expends its obligations for the early development of our Bowen Basin projects," he said.

Molopo is among a number of companies leading the development of CBM gas projects as a new energy source in Queensland and New South Wales.

The Company has a free-carried interest of approximately A$6.5 million in current production tests and early development work in the Mungi and Harcourt projects in the Bowen Basin, west of Gladstone.

Molopo and Helm Energy are partnered in the projects by OCA (50% and Operator).

Mr Mitchell said Molopo was on track to commercialise its interests in the Mungi and Harcourt fields by the end of the current calendar year, with current production test drilling due to be completed next month.

Molopo is currently determining which of two gas extraction options - surface to-in-seam or conventional water frac stimulation - it will use to commercialise the fields.

Molopo's Bowen Basin projects have gas in place of 3.67 trillion cubic feet (TCF) and possible recoverable reserves of 1.31 TCF - and with its other projects in New South Wales, the Company is among the largest owner of coal bed methane reserves in Australia.