Molopo said the study concluded the block contains 1.4 trillion cubic feet of in-place gas, compared with its own internal estimate of 700-800 million cubic feet.

Before revising its own figures, Molopo plans to review the report undertaken by the Shanxi Coal Bureau – the government institute responsible for most of the region’s coal geological analysis – together with any additional data.

Last week, Molopo announced that two newly drilled pilot wells at Liulin had confirmed the presence of thick coal seams to be fracture stimulated next month.

Almost six months ago, Molopo transferred its rights in the Liulin CSM production sharing contract 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.