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Gas content 12 to 20m3/t and flows proving very promising from initial wells within large tenement. Augurs well for 70% AJL & 30% MPO.
MEDIA RELEASE
Gloucester Project Update – Gas Production Commences and Expanded Pilot Announced
23 November 2007
Molopo announces today that its LMG03 coalbed methane (“CBM”) well within the Stratford Production Pilot in the Gloucester Basin has commenced initial gas production at a strong rate of 358,000 standard cubic feet per day (scf/d). Production continues to build on a daily basis as the water levels are reduced.
“The well has already demonstrated production capabilities well above the expected minimum threshold for a commercial project,” Molopo’s Executive Director, Mr Ian Gorman, said today.
The latest results for LMG03 remained of an interim nature as production was still increasing. Fluid levels in the well were at around 254 metres from ground level. The ultimate peak gas production rate may be higher once the water levels are drawn down below the lowermost producing coal seam at 403m.
In Feb 2006, LMG03 reached an interim production rate of 667,000scf/d of CBM. Gas production was still increasing when mechanical failure necessitated a pump replacement.
LMG03 is included in the previously announced five well Stratford production pilot. The JV has recently expanded the Stratford pilot by an additional well to further expand the reserves base. Two wells, Stratford #4 and Stratford #8, have been drilled, successfully cased and await fracture stimulation, while Stratford #5 and Stratford #6 have commenced. Drilling of the new well, Stratford #9 will commence this month.
The Gloucester JV has progressed reserves certification for the project, with independent certifiers Netherland Sewell & Associates Inc. engaged to prepare the initial reserves report expected by the end of 2007.
Work is well advanced on reviewing a range of market options to commercialise the Gloucester Basin permit through the initial development of the Stratford Pilot. This includes small scale power generation. The JV is in discussions with a number of potential gas buyers, and is progressing gas sales agreement negotiations which are the remaining step in securing the initial reserves certification.
The new six well Stratford production pilot has been designed by the Gloucester JV to further expand the reserves beyond the anticipated initial certification level and to ascertain production capabilities prior to a development decision. It is anticipated that the five new pilot production wells will be fracture stimulated during December and progressively on production.
Molopo’s holds 30% of this permit. Lucas Energy Pty Limited holds 70% and is also the project’s operator.
Issued by: Molopo Australia Limited
Yes Col Lector, I think it is a potentially very good news story in the making in the Gloucester Basin. I hold some AJL and some MPO. I posted in the ASX chat forum on Saturday regarding an article in the Newcastle Herald about CBM projects in the Hunter Valley and Gloucester particularly. I also noted a few weeks ago a NSW Gov't Dept advertising for a geologist to work in the assessment of CBM projects in the area. I think these things indicate that "real" things are happening in this area, not just exploration hype! I also have a few SGL shares, it would be nice to get back into the black with them. pointr
Business Description
AJ Lucas Group (AJL) specialises in the engineering, design and construction of projects relating to horizontal directional drilling (HDD), pipelines, degasification of coal mines and well head monitoring, gas exploration, building and civil engineering services, and facilities management
Company Strategy
AJL strategy focuses on improving the quality and maintainability of earnings streams, increase involvement in the growing Asian economies and leverage the Companys engineering expertise into sustainable services businesses. AJL operates in sectors where high barriers to entry exist and in which it sees opportunities for growth. Thus, AJL aims to be a niche, focused, vertically integrated infrastructure services business with an emphasis on the oil and gas, water and waste water, mining, property and construction sectors. In order to achieve its business strategy objectives, AJL has acquired on December 2004 the facilities management business of the Mace Group, with the intention to build a quality maintainable earnings stream. Further, the completion of the SEA Gas and Bass Gas pipelines will help establish a reputation which may aid AJL in securing several of the larger projects planned in the next few years. In the meantime, the company will attempt to secure small/medium pipeline projects to maintain a base level of revenue and work. Additionally, AJL plans to establish a solid presence in Hong Kong with the objective to secure additional projects in China. The company also seeks to capitalise on the buoyant coal sector by creating a service unit within the gas management division to provide a full service capability to clients in the coal and coal seam gas industries. AJ Lucas Group reported NPAT up 114% to $3m for the year ended 30 June 2006. Revenues from ordinary activities were $171.2m, up 130.4% from last year. Diluted EPS was 6 cents compared to (42.8) cents last year. The net operating cash inflow was $15.7m compared to an outflow of $6.6m last year. No dividend was declared.
as compared to the quoted FY2006....2007 results announced Friday, 24 August 2007
Highlights of the results are: revenue of $216 million, a 26% increase on the FY2006 ; profit after tax of $6.4 million, a 111% increase on the previous year.
The company has announced a dividend of 2.5c per share, fully franked.
AJ Lucas Group reported NPAT up 114% to $3m for the year ended 30 June 2006. Revenues from ordinary activities were $171.2m, up 130.4% from last year. Diluted EPS was 6 cents compared to (42.8) cents last year. The net operating cash inflow was $15.7m compared to an outflow of $6.6m last year. No dividend was declared.
Micheal, FY2007 results (below) are a big improvement on the FY2006 figs the extract quoted. This despite events such as the Goro site riots impacting results.
FY2008 results should give a clearer indication of AJL revenue potential ongoing from non-Gloucester operations. Gloucester income potential remains to be quantified...with the pending indep.reservres certification being the next key step to calculating this.... I'm sure more than a few trembling hands will be running over the figures..
as compared to the quoted FY2006....
Do you know whtis companyonly started to run since Aug06?
Before thenit was heading downwards unlike WOR fore example
thx
MS
Record profit of $8.2m for six months to
31 December 2007
Thursday, 21 February 2008
AJ Lucas Group Limited (ASX: AJL) today announced a 569% increase in net operating profit to a record $8.2 million for the six months ended 31 December 2007.
The latest first half result - which easily exceeded the Company's most recent full year profit - was achieved on total revenue that rose 141% from $85.0 million to a record $205.3 million.
Earnings before tax increased 10-fold from $1.4 million to $15.7 million after adjusting for non-recurring items.
Interim dividend has been re-introduced with a fully franked 3.5 cents per share dividend to be paid on 28 March 2008 to Lucas shareholders registered on 3 March 2008. It follows the payment of final 2.5 cents per share dividend out of 2006-2007 earnings.
"Outlook extremely positive"
Mr Allan Campbell, Lucas Executive Chairman and CEO, said the decision to resume payment of an interim dividend had been made in recognition of an extremely positive outlook and strong cash flow.
Cash flow from operations in the latest six months improved by $19.7 million, or 435%, to $24.2 million.
Looking ahead, Mr Campbell said the outlook over the balance of fiscal year 2008 was particularly strong with a record order book and all sectors of the business experiencing strong demand.
"We have upgraded our full year turnover forecast for the current full year to be in the order of $430 million to $450 million - double the company's previous annual revenue of $216 million achieved in 2006-2007", he said.
"Our current order backlog of $472.5 million, including the Bonaparte project, works required to complete the Eastern Pipeline and long term drilling contracts underpin the Group's operations over the next year, with many other projects also under tender."
Margins are expected to be similar to those experienced in the first half, subject to the impact of any rain interruptions in Queensland.
Strong performances from all Group divisions
Lucas, which recently acquired a strategic 15.35% shareholding in Sydney Gas Limited (ASX:SGL), is a leading provider of drilling and infrastructure services. Lucas is now:
* the leading supplier of drilling services to Australias coal and coal seam gas industries;
* one of two principal cross country pipeline contractors operating in Australia, offering a full engineering, procurement and construction service;
* a major Sydney building and project management company;
* a leader in trenchless technology; and
* a partner in major civil engineering infrastructure projects.
Mr Campbell said all Lucas divisions contributed to the record first half result following a substantial increase in activity.
"The result reflects the benefits of the positioning of Lucas in each of those sectors most likely to experience strong growth over the coming years, specifically oil and gas, water and waste water and resources," he said.
"The drilling division in particular is growing extremely rapidly, with its focus on drilling for the coal and coal seam gas industries. The group is now the Australian market leader in this activity due to a combination of acquisitions and organic growth," he said.
"We are also applying our coal seam gas expertise, both technical and drilling, to the development of our own gas assets, with the Gloucester Basin expected to announce its first reserves shortly, leading to an eventual divestment of this asset."
"The Company also has high hopes of replicating its coal seam gas success at Sydney Gas where the recent purchase of a 15% shareholding makes Lucas SGL's largest single shareholder."
~ 525 BCF
1P 14.9
2P 170.2
3P 359.2
Contingent 166.2
The certification identifies a potential 525.4 Bscf of recoverable gas (3P plus contingent
resources) from a mapped volume of approximately 1600 Bscf (1.6 Tscf) of gas in place.
The current exploration data, on which NSAI has based its assessment, covers only part of the
Basin. As the exploration program is expanded, this should lead to additional areas being
included in future reserves certification exercises.
Lucas and Molopo currently estimate the overall Gas-in-Place potential for the Basin to be in the
range of 2.5-3.0 Tscf. It is anticipated that a reserves upgrade will be announced in late 2008 or
early 2009 once further exploration results are available and the production performance from
the recently expanded pilot (five new production test wells) are known.
E L & C Baillieu Stockbroking Ltd
Molopo: Gloucester and South Africa developments increase valuation ranges
Recent exploration success in the Gloucester Basin (New South Wales) and the signing of an LNG gas sales memorandum of understanding in South Africa have led to an increase of our valuations for both projects.This has led to a material upgrade in our valuation ranges for Molopo Australia Ltd. Our new valuation range is between $1.28 and $2.52 per share (with a mid point of $1.77), up from a range between 86 cents and $2.20, (with a mid point of $1.29 per share).
Most of the increase in valuation range is due to an increased valuation for the Gloucester Basin
coal seam gas field, which is now nearing development. Our valuation range for the Gloucester Basin
CSG fields has increased from $66 million to $250 million to a new valuation range of between $266 million
and $400 million.In our view the Gloucester Basin will become the next major coal seam gas province in Australia and will likely have a terminal valuation (upon development) in excess of $1 billion.
Surprised AJ Lucas hasnt run as far as the others in the CSG sector. They have a lot going for them and should be a major winner of the new QGC pipeline build which will add to their CSG interests.
AJL are the largest Australian coal and CSG driller. They have,
■ cash flow from operating businesses
■ 70% interest in Gloucester Basin, NSW _ Important with the new QGHL pipeline
■ attributable 2P reserves 119 PJ
■ drilling to increase reserves
■ 100km pipeline required to market
■ 15% interest & management of SGL
AJL’s objective is to prove up additional 2P reserves in Gloucester Basin and SGL assets and spin off Lucas Energy (CSG Assets) as a separate vehicle by calendar year end and commercialise the assets. Its operating businesses have the usual broad range of operating risks.
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