The Gas Sale Agreement allows for the sale of Molopo’s share of gas from the recently completed Phase 1 wells and most likely all gas delivered from the future Phase 2 wells with a contract for up to 1.5 million cubic feet of gas per day.

Phase 2 drilling is expected to begin next month although Molopo has been delivering gas to Origin Energy since March from the Phase 1 development wells at Mungi. As well as entering into the formal Gas Sales Agreement, Molopo and Origin also completed ancillary gas transportation and processing agreements.

Molopo believes its southern Bowen Basin fields have the potential to host several hundred wells. An independent reserve report calculated the Mungi Field to have current total proven, probable and possible reserves of 56PJ – of which 26PJ are in the 2P (Proven & Probable) category.

The partners in these fields are Oil Company of Australia (Moura) 50%, Molopo 25% and Helm Energy-Australia LLC (25%).