The Melbourne-based company said it signed the deal with Dawson Sales, a company owned by Anglo Coal and Mitsui Moura Investment.
The two-year agreement is retroactive to January 1, 2007 and supplements Molopo’s contract to sell smaller volumes of gas to Queensland Cotton until 2009.
Molopo is preparing to drill up to three new horizontal wells at Mungi, the production from which will now be sold to Dawson. Molopo will have a 100% interest in the new wells.
Drilling at Mungi is expected to begin in about two months.
The Mungi gas field is currently producing 1.6TJ of CSM per day. An independent reserve report commissioned by Molopo credited the Mungi gas field with proven reserves of 21 petajoules, proven and probable reserves of 58PJ and proven, probable and possible reserves of 151PJ.
Interests in the Mungi gas field are Anglo Coal (Dawson) (25.5%), Mitsui Coal Holdings (24.5%), Molopo (25%) and Helm Energy-Australia (25%).
