AUSTRALIA
Molopo Energy's Queensland projects are the Mungi Gas Field, the Harcourt Gas Field and Greater Timmy Area.
In Queensland, Molopo Energy has increased both production and reserves during the year with 3P (Proven, Probable and Possible) Reserves increasing from 105 to 231 BCF ("billion cubic feet") and 2P (Proven and Probable) Reserves from 42 to 48 BCF.
Our new multi seam lateral wells have increased gas production with the last two horizontal wells peaking at in excess of one thousand cubic feet per day ("mcf/d") each. These complex wells are the first of their kind to be drilled in Australia and with each well we increase our ability to access more coal, which translates into higher gas production and recovery rates per well. Indeed early results from the first few wells have demonstrated this likelihood and have increased our confidence that the Queensland acreage will yield significant production and reserves in the years to come.
Gas sales for the year were $724,853 ($609,140 in 2007/08) and Molopo's share of production increased to 345 terrajoules ("TJ") from 313 TJ in the prior year.
