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MPO - Molopo Gas

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Questerre - 12mmcf/d initial rate from Utica - current rate 5mmcf/d

should get them going over there !




February 23, 2010 - Utica well tests at 12 MMcf/d






Calgary, Alberta -- Questerre Energy Corporation("Questerre" or the "Company") (TSX,OSE:QEC) ispleased to report on the test results from the St.Edouard No. 1A horizontal well in the St. LawrenceLowlands, Quebec.The horizontal well was successfully completed with 8stage fracture stimulations. Clean-up and flow backcommenced January 29, 2010. Initial rates were over 12MMcf/d. During the test, the well flowed natural gasat an average rate of over 6 MMcf/d.The well is currently still flowing on an extendedproduction test. The current rate is approximately 5MMcf/d at a flowing tubing pressure of 4412 kPa (640psi) with a choke size of 5/8 inch.Michael Binnion, President and Chief Executive Officerof Questerre, commented, "This first horizontal resultis simply excellent!"During the completion, microseismic data was gatheredusing the St. Edouard No. 1 vertical well as amonitoring well. Preliminary analysis indicates thefracs were successful in stimulating sufficient rockvolume in the entire Utica sequence.Mr. Binnion added, "The initial rates from St. Edouardexceed our internal threshold for commercialproduction on a per well basis based on targeteddevelopment costs."The Company and the operator are evaluating pipelineoptions to tie-in the St. Edouard location.Questerre Energy Corporation is an independent energycompany focused on shale gas in North America. TheCompany is concentrated on establishing commercialityof its Utica shale gas discovery in the St. LawrenceLowlands, Quebec.For further information, please contact:Questerre Energy CorporationAnela Dido, Investor Relations(403) 777-1185 | (403) 777-1578 (FAX) |Email:info@questerre.com
 
Good post 'financial chat', and hopefully good news for MPO. Lets hope MPO can actually get a hole drilled in Quebec. Is that area able to be drilled in summer or are there problems with the ground similar to the oil play land??
 
"WestSide is concerned that some market participants may have become aware of some details of the proposed transaction."

Well, one only has to read page 22 of the AFR "Westside ready to swallo Anglo Coal holdings"

... Westside which agreed to pay between $55 - 80M ... is expected to unveil a transaction at the low end of the range...

... But MPO hold pre-emptive rights over Anglo's 25.5% stake in the 2 exploration tenements and has until the end of the month to decide whether to exercise them...


if the price is at the lower end of the range, I think that you can safely predict that MPO will exercise its rights
 
MPO today announced that it would exercise preemptive rights to increase its position on some its QLD fields. The final size of its investment will depend on whether other JV partners exercise their rights. Nothing much happening to the SP today though.
 
Another excellent announcement today regarding reserves increases on the QLD projects. The announcement also reinforces the knowledge base MPO has accumulated to deliver in areas where others have failed. Some factors I think to drive MPO to perhaps new highs: Todays announcement, general renewed interest in the sector from AOE takeover, significant results coming from neighbouring acreage in Quebec, flow rate announcements from Canada oil fields expected over coming months. So a few thoughts on the fundamentals, now where's 'Financial chat' for some TA:2twocents:)
 
From this morning's announcement detailing the first part of the reserve upgrade I have extracted some of the points that I found most encouraging:

Mungi-20V establishes new production record for a well the Mungi Field with production building to 1.8 MMscf/d and still increasing. Mungi Field reaches record production level.

Molopo intends to continue its reserves expansion activities during 2010 with exploration and appraisal campaigns planned for Harcourt North and Timmy Prospects.

A separate reserves review process is also underway for the Lilyvale/Oak Park acreage in ATP 564P which is expected to be finalised during March.

Drilling results and the subsequent follow-up reviews are aimed at transferring a portion of the contingent resources into 2P and 3P reserves before the end of the calendar year.

Mungi-20V, has set a new record for a producing well in the Mungi field and surrounding areas.

Total Mungi Field production now exceeds 2.8 MMscf/d; this represents a new record for production at Mungi since the field started in late 2003.

The current well Mungi-23 will be the last in the development trial programme. It will represent the first triple-seam/triple-lateral drilled in Australia and to Molopos knowledge in the world.

The increases in reserves provide Molopo with the largest 2P reserves position in Queensland which is not subject to firm supply contracts.

Significant upside scope still exists to increase cut-off depths at which gas in the ground can be commercialised and the reserves base further increased.

With Molopos gas-fired Power Generation study now entering the bankable feasibility stage and the extension of its gas sales agreement with Dawson sales Pty Ltd, the company is well positioned to access the expanding revenue stream from the increasing gas production.

It is possible that Molopo will become the largest net gas producer in the Moura area.

The net reserves now confirmed and the scope for further increases provide Molopo with the scope to supply gas to the emerging Gladstone LNG market as a secure independent third party supplier.

The application of advanced technology and novel drilling techniques and the creation of an operational excellence bodes well for future operations.
 
It is interesting to see what difference a day makes!

From Getagraph.com

SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Tuesday 9 Mar. 2010]:

MOLOPO AUSTRALIA LIMITED is up by 4.62% yesterday from AUD 1.30 to AUD 1.36, and has now gained 4 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 5 out of 10 days, and is up by 3.03% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 1.09 million more shares than the day before. In total there were bought and sold 1.43 million shares for approx. AUD 1.94 million.

3 MONTH TREND
MOLOPO AUSTRALIA LIMITED has broken the wide and weak falling short term trend up. In first place a slower falling rate is indicated, but this may very well be a first signal of a trend shift. On reaction back there will be support on the roof on the current trend broken, which is AUD 1.35, a level that may pose a second chance to hit a runner. According to fan-theory AUD 1.67 will be next possible trendtop level and thereby pose a resistancelevel which may not be broken on first attempt.

Support/Resistance |s
Support 1: AUD 1.35 Resistance 1: AUD 1.38
Support 2: AUD 1.33 Resistance 2: AUD 1.40
Support 3: AUD 1.32 Resistance 3: AUD 1.46



MOLOPO AUSTRALIA LIMITED [Monday 8 Mar. 2010]:

MOLOPO AUSTRALIA LIMITED is up by 1.56% yesterday from AUD 1.28 to AUD 1.30, and has now gained 3 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 5 out of 10 days, and is up by 5.69% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 11 265 more shares than the day before. In total there were bought and sold 336 815 shares for approx. AUD 437 860.

3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays the upper part of a wide and strong falling trend on short term, and this will normally pose a very good selling opportunity for the short term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trendline at AUD 1.35 will in first place indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short term trend the stock is expected to fall -10.2% during the next 3 months and with 90% probability hold a price between AUD 0.92 and AUD 1.21 at the end of this period.

Support/Resistance |s
Support 1: AUD 1.30 Resistance 1: AUD 1.32
Support 2: AUD 1.24 Resistance 2: AUD 1.33
Support 3: AUD 1.19 Resistance 3: AUD 1.37
 
The share price drop is predominantly due to the fact that you are now also have an entitlement to take up new shares on the basis of 1 share for every 7 that you currently hold at a price of 1.03
 
FROM WILSON HTM

Molopo Energy Limited Initial 2P and 3P reserves for Lilyvale/Oak Park
Announcement details:
MPO announced initial independently certified 2P and 3P reserves for the Lilyvale/Oak Park field of 42 PJ and 157 PJ respectively.
The reserves certification is based on commercialisation of the Lilyvale gas field through the development of a gas-fired power station.
The 2P reserves of 42 PJ are sufficient to support a 30MW power station for its 20 year life. Appraisal and planning is expected to commence in 2011 for a 30MW initial phase, with expansion to 60MW.

MPO has now exceeded its CY2010 2P and 3P reserves targets for Queensland CSG of 200 PJ and 500 PJ respectively.
Net reserves for MPOs Queensland acreage now upgraded to 24 PJ of 1P, 218 PJ of 2P and 600 PJ of 3P.
WHTM view:
Initial analysis This is a positive step towards converting resources to reserves for the Lilyvale/Oak Park field. We understand that the reserves upgrade was not a result of additional drilling but a reassessment in light of the proposed commercialisation of the gas.
Earnings implications - No material changes expected to forecasts, to be confirmed when our model is updated to incorporate the proposed power plant.
Investment view MPO continues to make progress towards increasing reserves for its Queensland CSG. In early March, it reported substantial increases in the 1P and 2P levels for its Mungi field. We expect further reserve additions with further development at Mungi and exploration drilling at Harcourt and Timmy during 2010. Progress also continues with its Canada unconventional oil and shale gas projects. We retain our BUY recommendation, price target of $A 2.25 under review but is likely to remain unchanged.
 
I think the fact that this has held it's share price in the mid to high teens during the share offer (1.03 for retail) shows a lot.

A great company with good management that has picked up a lot of good acreage at rock bottom prices during the GFC. This is now starting to pay dividends with the increasing cashflow from the new shale oil operations in Canada, the gas flows in South Africa (getting closer to selling these - although haven't "signed" anything yet) and of course the operations in QLD.

I think if you are looking in the medium to long term (ie greater than 6 months) you cant help but see today's prices as a low point due to the offer.

malachii

PS PLEASE NOTE!!: I OWN A DECENT SIZE CHUNK OF THESE SHARES (MPO) AND AM ACCUMULATING MORE - SO MY OPINION IS VERY BIASED!!!!!
 
I also think MPO has a bright future, just not sure if any of that good future is ever going to emerge from South Africa. We get the spin through our media of the 'Rainbow Nation', but we have the current ANC leader reported as singing something called "Get Me My Machine-Gun" during his last campaign. The ANC's youth leader is also reported to have sung a little chant recently about killing white farmers. SBS in one of their bulletins yesterday reported on the number of white farmers killed in South Africe vs the number in Zimbwabwe. I know a vetinary surgeon who recently sold his NSW practice to a Sth African ex-pat ( or perhaps refugee?) The South African professional felt there was no future for his family in South Africa. So MPO's excellent management may need all there skills to extract value out of that nation. It may become another one where they cut their losses to concentrate elsewhere. Who knows??:2twocents
 
pointr,

Totally agree with your South Africa comments. I guess I see this as the "high risk - high return" part of their portfolio. IF it comes off - it could pay a lot of money - if not - they haven't really "bet the bank" on it.

malachii
 
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Monday 12 Apr. 2010]:
(Autocomments)
MOLOPO AUSTRALIA LIMITED is up by 2.40% yesterday from AUD 1.25 to AUD 1.28 , and has now gained 3 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 7 out of 10 days, and is up by 16.36% over the past 2 weeks. Volume fell last day by -0,09 million shares and in total there was bought and sold 1,41 million shares for approx. AUD 1,80 million. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.

3 MONTH TREND
Given the current horizontal trend you can expect MOLOPO AUSTRALIA LIMITED with 90% probability to be traded between AUD 1.07 and AUD 1.34 at the end of this period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend and up the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

Support/Resistance |s
Support 1: AUD 1.20 Resistance 1: AUD 1.30
Support 2: AUD 1.18 Resistance 2: AUD 1.32
Support 3: AUD 1.15 Resistance 3: AUD 1.37
 
From Getagraph.com

SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Tuesday 13 Apr. 2010]:
(Autocomments)
MOLOPO AUSTRALIA LIMITED fell by -0.78% last day from AUD 1.28 to AUD 1.27. . In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 7 out of 10 days, and is up by 15.45% over the past 2 weeks. Volume increased last day by 0,36 million shares, but on falling prices. This is may be an early warning and risk is increased a bit for the next couple of days. In total there were bought and sold 1,77 million million shares for approx. AUD 2,25 million.

3 MONTH TREND
Given the current horizontal trend you can expect MOLOPO AUSTRALIA LIMITED with 90% probability to be traded between AUD 1.09 and AUD 1.37 at the end of this period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend and up the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

Support/Resistance |s
Support 1: AUD 1.20 Resistance 1: AUD 1.28
Support 2: AUD 1.18 Resistance 2: AUD 1.30
Support 3: AUD 1.15 Resistance 3: AUD 1.37
 
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Wednesday 14 Apr. 2010]:
(Autocomments)
No changes to price of MOLOPO AUSTRALIA LIMITED last trading day. In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 6 out of 10 days, and is up by 12.39% over the past 2 weeks.

3 MONTH TREND
Given the current horizontal trend you can expect MOLOPO AUSTRALIA LIMITED with 90% probability to be traded between AUD 1.11 and AUD 1.40 at the end of this period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend and up the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

Support/Resistance |s
Support 1: AUD 1.20 Resistance 1: AUD 1.28
Support 2: AUD 1.18 Resistance 2: AUD 1.30
Support 3: AUD 1.15 Resistance 3: AUD 1.37
 
SHORT TERM COMMENTARY:
MOLOPO AUSTRALIA LIMITED [Thursday 15 Apr. 2010]:
(Autocomments)

MOLOPO AUSTRALIA LIMITED fell by -0.79% last day from AUD 1.27 to AUD 1.26. . In the last 10 days the price of MOLOPO AUSTRALIA LIMITED has been rising in a total of 5 out of 10 days, and is up by 9.57% over the past 2 weeks. Volume increased last day by 1,46 million shares, but on falling prices. This is may be an early warning and risk is increased a bit for the next couple of days. In total there were bought and sold 2,22 million million shares for approx. AUD 2,80 million.

3 MONTH TREND
MOLOPO AUSTRALIA LIMITED lays the middle of a wide and weak rising trend on short term and further rise within the trend is signalized. Given the current short term trend the stock is expected to rise 2.1% during the next 3 months and with 90% probability hold a price between AUD 1.13 and AUD 1.41 at the end of this period.


Support/Resistance |s
Support 1: AUD 1.20 Resistance 1: AUD 1.27
Support 2: AUD 1.18 Resistance 2: AUD 1.28
Support 3: AUD 1.15 Resistance 3: AUD 1.37


From Getagraph.com
 
from Wilson HTM this morning:

Molopo Energy Limited – MPO signs gas sales agreement in South Africa
Announcement details:
MPO has signed a gas sales agreement with Novo Energy (Pty) Limited, a privately owned South African company.
The GSA is for MPO to supply, on an "as available" basis, ~600 mscfd of gas from four existing wells in MPO's Virginia field.
The gas will be used for compressed natural gas (CNG). Novo will construct CNG facilities near each well head and transport the CNG to customers for use in local vehicles.
Under the GSA Novo has the right to purchase gas from an additional four existing wells, which if exercised would take total supply to ~1 mmscfd, on the same pricing terms.
Novo also has the first right of refusal to purchase additional gas from new wells developed by MPO, up to a total of 8.2 TJ/d (~3 PJ/year), on separate terms.
Commencement of gas supply is subject to conditions precedent being satisfied, including regulator approvals.
MPO expects to submit a "Production Right" application to the authorities in the coming weeks. The approval process may be lengthy, however, MPO has received interim approval.
The GSA is for a 10 year term. Gas sales are expected to commence in March 2011.

WHTM view:
Initial analysis - This is a small but positive development, which will enable MPO to receive revenue from gas that is currently flared or vented. Revenue could potentially be augmented by carbon credits, given the reduction in methane emissions associated with the cessation of venting (methane is ~20 times more potent as a greenhouse gas than carbon dioxide).
Earnings implications - Under review. The impact is expected to be relatively small; the GSA will result in earlier revenue (1HCY11) than we had modelled (small scale LNG from mid-CY12) for this project.
Investment view - We believe MPO continues to make good progress progressing its key projects. Buy recommendation retained, price target of $2.45 under review.


John Young | Senior Resources Analyst
Wilson HTM Investment Group
 

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