But the Melbourne-based CBM developer said it would keep the Liulin project on the market for parties seeking acquisition or participation.

Under the conditional agreement with a Australian-based company, whose name was not released, Molopo was supposed to receive $300,000 of cash and shares, as well as retaining a US$0.125/gigajoule royalty on any gas production from the Liulin Field.

At the time of the announcement in July this year, Molopo said the purchase was conditional upon final documentation, board approvals and the support of the Chinese partner, China United Coalbed Methane Corporation.

The sale was intended so that Molopo could focus on its expanding gas production in Queensland and gas appraisals in the Gloucester Basin and the United States, said managing director Stephen Mitchell.