The maiden gas sales for Molopo followed the successful commissioning of its 50% owned gas compressor to the south of the Mungi field. The gas compressor has the capacity to treat between 5.5 - 6.2 terajoules (TJ)/day.
Gas from the initial Mungi wells has increased from 1.7 TJ/day in February this year to 2.2 TJ/day currently, as the field's Phase-1 wells move gradually to stable production levels. Molopo's share of current production is approximately 37%.
Molopo's managing director, Stephen Mitchell, said "Our first gas sales represent an important first step in developing the large gas reserves we have in Queensland."
"Proceeds from the recent $4 million placement will allow the company to participate in the further development of the Mungi Field and build on our initial cash flow from existing wells," Mitchell said.
"The commencement of gas sales also represents a milestone in Molopo's development. It is the culmination of successful production testing, independent reserve certification, field and infrastructure development and a series of commercial arrangements."
Interest holders in the Mungi project are Oil Company of Australia (Moura) Pty Limited (an Origin Energy subsidiary - 50%), Molopo (25%) and Helm Energy-Australia LLC (25%).
