CANADA
Bakken Unconventional Oil (Williston Basin, Saskatchewan 100% interest)
| Key Project Information | |
| Land position: | ~ 45,000 acres or ~70 sections |
| Working Interest: | 100%, Operator |
| Partners: | None |
| Resource Type: | Unconventional, Tight Oil |
| Target: | Bakken Sand, Shale |
| Stage of development: | Exploration |
Background
Molopo's Bakken acreage is located in the south eastern part of the province of Saskatchewan, Canada.
Molopo currently holds a 100% working interest in just over 70 sections of land (45,000 acres) in the Bakken tight oil play.
The Bakken leases are located in two key areas, Estevan and Weyburn and the acreage was acquired by the company in September 2009.
Following drilling of six wells in early 2010, the term of the Bakken leases has been extended until at least 2015. Molopo has the option to earn an additional 6.25 sections of land (4,000 acres) by drilling a second well at Torquay.
Reserves
| Net Reserves | ||||
| Oil - MMstb | 1P | 2P | 3P | Contingent Resource |
| Bakken5 | 0.3 | 0.6 | 0.7 | 1.5 |
5. Reserves independently certified by Terry Aarsby of GLJ Petroleum Consultants Calgary Canada who has consented to the inclusion of the form and content of the reserves and resources information
Geology
The Bakken play is a regionally extensive shale/siltstone extending from Montana and South/North Dakota in the USA to Saskatchewan in Canada. Over the acreage the reservoir target depth will vary from 1700m at Weyburn to 2200m at Estevan.
The Bakken oil is a light sweet crude which is sold under the Edmonton Light crude classification. This crude achieves essentially price parity with WTI.
Work Programme
An extensive 3D seismic survey has been completed in the Estevan area. Early interpretation has allowed Molopo to identify high-grade locations within the area which are priority targets for upcoming drilling. Molopo will test the interpretation of the survey through drilling exploration wells to ascertain the validity of the present model.
Molopo is progressing with a 7 - 10 well drilling program.
Quebec Shale Gas
| Key Project Information | |
| Land position: | ~ 1.4 Million acres |
| Working Interest: | 100%, Operator |
| Partners: | None |
| Resource Type: | Unconventional/Shale Gas |
| Target: | Potsdam, Beekmantown and Trenton Blackriver formations and the Utica Lorraine Shales |
| Stage of development: | Exploration; on hold pending government review of industry |
Background:
Molopo's Quebec shale project is located in the province of Quebec, Canada.
Molopo holds approximately 1.4 million acres of exploration acreage in the province of Quebec.
With effect from June 13, 2011, the Quebec Government enacted Bill 18 "An act to limit oil and gas activities", following commencement of a series of local consultation and industry hearings into the impact and scope of the potentially significant shale gas industry on Quebec.
The Act revoked certain mining rights in the St Lawrence River area which affected approximately 38,500 acres of Molopo's acreage. Bill 18 further provides that work obligations are waived for holders of licences to explore for petroleum and natural gas from performing the work required under the Mining Act from June 13, 2011 until such date as determined by the Minister; however such date shall not be later than June 13, 2014 (the "Exemption Period"). The term of the licences shall be suspended during the Exemption Period and the expiry date extended correspondingly.
Molopo is working with the government of Quebec, through the joint industry association QOGA, to help establish a sustainable basis for the development of the shale gas industry of Quebec. Quebec remains a potentially attractive longer term investment opportunity for Molopo.
Reserves/Potential
Prospective resource estimated at 5.5 TCF
Page last updated: 09 Jan 2012