Under the agreement Molopo will sell a minimum 5,250GJ gas from its southern Bowen Basin Mungi coal-bed methane field to Queensland Cotton during the cotton processing season.
“While the initial quantity of gas sales is small, the contract price is excellent and there is the possibility of higher quantities with the Cotton Corporation,” Molopo’s Managing Director, Mr Stephen Mitchell said.
“The ability of Molopo to enter into a series of high value, but small contracts has the potential to improve returns from our Queensland gas portfolio,” Mr Mitchell said.
Molopo said its southern Bowen Basin fields could host several hundred wells.
Molopo has a 50% interest in the contract. The partners in these fields are Oil Company of Australia (Moura) Pty Limited (50%), Molopo (25%) and Helm Energy-Australia LLC (25%).
An independent reserve report undertaken by US independent expert Netherland Sewell & Associates calculated the Mungi Field to have current total proven, probable and possible reserves of 56PJ of which 26PJ were in the 2P (proven & probable) category.
