Helm have paid us nearly $3 million in cash and will spend the next $7 million required of us in the project which means $28 million will need to be spent before Molopo has to contribute again," said Molopo's managing director, Mr Steve Mitchell.
Molopo has also told the Oil Company of Australia that it intends to farmin into the undeveloped, northern section of PL94 in the Bowen Basin. PL94 adjoins the southern border of ATP564P in which OCA has about 50 producing CBM wells and is one of Australia's most advanced CBM projects, according to Mr Mitchell.
He added the option allows Molopo along with Helms Energy to farm-in to this area earning a 50% interest (net 25%) with an outlay of $800,000.
As for the company's coalbed methane project in Shanxi Province China, Mr Mitchell said the company has completed production testing trialing four different stimulation techniques and while the test results had not been revealed to the market, water fraccing did have the most "potential".
