SOUTH AFRICA
Virginia Gas Field
| Key Project Information | |
| Land position: | 750,000 acres |
| Working Interest: | 80% |
| Partners: | BEE & South African Government |
| Resource Type: | Biogenic Gas |
| Target: | Karoo strata and Ventersdorp lavas |
| Stage of development: | Exploration, awaiting production right |
Background
Molopo's Virginia project is located in the Free State province of South Africa, some 250km southwest of Johannesburg. The project covers a vast area where gas emitting boreholes have been identified from mineral exploration.
Molopo's current interest in this project is 100%, however this is expected to reduce to 80% after the Black Economic Empowerment commitments and the South African Government's back-in participating interest obligation are met in accordance with the terms of the expected Production Right.
Exploration work and production monitoring activities continued throughout 2011 in support of Molopo's Production Right application submission to the Petroleum Agency of South Africa (PASA), lodged over an initial 0.2 million acres. Granting of the Production Right is anticipated during Q1 2012.
Reserves:
| Net Reserves | ||||
| Gas - Bscf | 1P | 2P | 3P | Contingent Resource |
| South Africa3 | 9.2 | 23 | 83.7 | 652 |
3. Reserves independently certified by Tim Hower of MHA Petroleum Consultants LLC, Denver, USA who has consented to the inclusion of the form and content of the reserves and resources information. Gross certified reserves have been reduced by 20%, representing BEE participation and government back in rights.
Molopo has a gas sales agreement with Novo Energy for the initial sale of approximately 600,000 standard cubic feet per day (cf/d) of gas for CNG (Compressed Natural Gas) for use in vehicles. Novo also have first right of refusal to purchase additional gas up to 8,200,000 cf/d. Work on the infrastructure required to fulfil the terms of this agreement from both parties will commence upon receipt of the Production Right.
Molopo has received an updated reserves certification for the Virginia Gas Field, which certified Molopo's first proved gas reserves for the region (11.5 Bcf 1P on a 100% basis).
Work Programme
Gas flow rates for 11 pilot wells in the Virginia production pilot averaged 1.3 MMcf/d during FY2011. This was an increase of approximately 0.2 MMcf/d from 2010. Work will commence to tie in existing production to Novo facilities will commence upon receipt of the production right. Further exploration is envisaged for 2012 in the form of an up to 12 well trial development programme to further de-risk this asset.
Evander Gas Field
| Key Project Information | |
| Land position: | 150,000 acres |
| Working Interest: | 100% |
| Partners: | None |
| Target: | Karoo strata and Ventersdorp lavas |
| Stage of development: | Exploration |
| Reserves: | No reserves certified |
Background
Molopo's Evander project is located in the Mpumalunga Province of South Africa, some 70km southeast of Johannesburg.
Exploration activities continue with the integration of the 2D seismic data with regional geological and petroleum engineering data to assist future exploration activities.
Production from all six monitored Evander boreholes was approximately 0.3 MMcf/d as at September 2011.
Page last updated: 05 Jan 2012