QUEENSLAND

Queensland permits and prospects. |

Mungi Gas Field.
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Mungi Gas Field – (PL94 Sublease) (50% interest northern portion)
Molopo’s share of gas production (excluding compressor gas consumption) and sales from the Mungi Gas Field for the year was 345 TJ and $724,853, respectively.
With the successful drilling of Mungi 20A CBM well, Molopo announced the completion of the first triple seam dual lateral trial well in Australia. Following initial drill string issues, the vertical well was re-drilled and the well completed with shorter laterals. A total of approximately 2,900 metres of net coal was
completed in six laterals from two surface locations involving three seams. The well was completed and tied-in to the gas sales system in December 2008. Mungi 20a, reached peak gas production rates between 1.1 and 1.2 MMscf/d during the March to May period with facilities pressure control limiting further production increases.
The next well in the programme, Mungi 20V, used the existing initial Mungi-20 vertical well and a new rig was brought in to drill laterals of 1,000 metres and longer. Molopo achieved a major milestone with the completion of this well during the year. It was the third innovative multi-lateral trial development well. Mungi 20V successfully accessed over 5,300 metres of lined
coal in six laterals, involving three coal seams. This is significantly more than any other lateral well drilled in Australia. The well was connected to the gas sales system in July 2009. In mid-August 2009, Molopo announced that the well had reached an interim milestone of 1 MMscf/d gas flow.
Drilling of the fourth well in the current programme, Mungi 21, commenced in June 2009. The vertical target well for the proposed laterals, Mungi 21V,
was drilled to its planned total depth of approximately 775 metres in June 2009. Mungi 21 is targeting a
total of 7,000 metres of completed in-seam coal length utilising laterals of 1,200 metres gross length and longer.
Subsequent to period end, Molopo issued a new Sole Risk Operation Notice for the drilling of Mungi 23, located in the northern portion of PL 94 sublease. This proposed triple seam, triple lateral development well is expected to access 9,000 metres of lined coal.
The configuration of recently completed and planned wells,
together with the performance of the recently completed wells is summarised in the following table: |