Reiterating comments by its London-listed partner Fortune Oil, Molopo said the drilling had confirmed the presence of thick coal seams, which will be fracture stimulated next month.
Located in the north-central area of the block, the EP2 and EP1 wells intersected 7.4m and 5.4m of coal in the target seams, respectively.
During drilling, core samples were taken of the major coal seams, with the results expected by the end of March. The coal seams will then be permeability-tested and fracture stimulated, awaiting pilot production testing.
Last August, Molopo transferred its rights in the Liulin CSM production sharing contract (PSC) to a new incorporated joint venture company, Fortune Liulin Gas.
Fortune is 40% owned by Molopo and 60% by JV partner Fortune Oil, which is funding the first $US2.5 million ($A3.3 million) of work at the Liulin project.
