CALGARY, ALBERTA--(Marketwire - Nov. 29, 2012) - Molopo Energy Limited (News - Market indicators) today announces the monthly operational and corporate update on our activities and progress achieved through November. 

Operational Highlights

• Average corporate production for the month of October was 932 boe/d, more than double that of the previous month, and 465% higher than production at the beginning of the calendar year;
  
  
• Molopo's first Bench B well drilled in Fiesta, Baggett 54-1H started to produce measurable oil on 26 November at an early stage of clean-up with only 7.5% of the load fluid recovered;
  
  
• Thirty day production (IP30) rates in Molopo's Barnhart area met expectations;
  
  
• Bench A wells drilled in Fiesta continue to stabilize with results being monitored to understand viability of continued Bench A development;
  
  
• Molopo's 2013 capital budget will be confirmed once data is available from the Baggett 54-1H Bench B well and the Linthicum Washington 24-2H well in Barnhart;
  
  
• Molopo anticipates calendar year 2012 exit production rate to be within a range of 1,500 to 2,100 boe/d depending on timing of wells coming on-stream and well results, particularly from the Baggett 54-1H well and the 24-2H well in Barnhart. 
  
  

Corporate Update

• Molopo will change our financial year end to 31 December from 30 June in order to be more favorably positioned in the North American operating and financial markets. 
  
  
• Effective 1 July 2012, our presentational currency will also be changed from Australian dollars to U.S dollars to enable reporting in the same currency as the majority of our revenues and expenditures.
  
  

TEXAS DRILLING RESULTS⁽¹⁾ - WELL BY WELL SUMMARY:

Texas Operational Highlights

• Baggett 54-1H (Fiesta) - On 25 November this well first showed oil staining and by 26 November started to produce measurable oil after only 7.5% of load fluid was recovered, which is earlier than experienced with our other Fiesta Wolfcamp wells. As this is our first well drilled into Bench B in the Fiesta area, results from this well will be significant to both our exit production rate and our future development program.
• Parker 85 (Fiesta) - In October, a vertical recompletion of the Wolfcamp commenced in this well, which is one of the first 3 horizontal wells drilled in Texas in late 2011. Following fracture stimulation, this well began to flow back in November, and post clean-up, Molopo will move up the well bore and test the Spraberry formation as well. Depending on the results of this vertical recompletion, we may elect to vertically develop other locations on our acreage to complement the existing horizontal development.
• Linthicum-Washington 24-2H (Barnhart) - On 8 November, Molopo spudded this 3^rd well in the Barnhart area, and drilling concluded 28 November with an 8,170 foot lateral. Completion of this well is scheduled for early December, with flow back and results expected in late December or early January. 
• Bench A wells drilled in Fiesta have exhibited steep initial declines but appear to have stabilized sooner. While this impacts near term production levels, it is expected to contribute to longer, more stable production at the tail end of the production curve. Continued analysis of the Bench A wells is required to assess type curves, as well as determine future development opportunities in this Bench. 

2013 Capital Budget

• Molopo is currently working through the 2013 budgeting process, and a final capital budget for 2013 will be available following results from the 54-1H Bench B well, the 24-2H well in Barnhart, plus further stabilization data from the other wells drilled through the last half of calendar year 2012. By incorporating these data points, Molopo will be able to make the most prudent decision regarding optimal investment, and be better able to target the locations and Benches with the best performance to date. It is anticipated a final budget will be available early in 2013 and will be released at that time. 

Saskatchewan Operational Highlights

• No new wells were drilled or completed in Saskatchewan during November, and Molopo's technical team continues to evaluate the optimal future strategy for this asset.

Production

• Production in October 2012 totaled 932 boe/d, with 83% coming from Texas (775 boe/d), and 17% coming from Saskatchewan (157 bbl/d). The breakdown in October by product was 52% light, sweet crude oil; 19% natural gas liquids; and 29% natural gas.
  
  
• Despite the significant growth in our production over the past month, Molopo's October production was curtailed by approximately 100 boe/d due to downtime and associated flaring. The majority of this was caused by operational problems experienced on third parties' externally operated gas systems. 
  
  
• Molopo expects to exit calendar year 2012 producing in a range of 1,500 to 2,100 boe/d, depending on production timing and results from the Baggett 54-1H well and the 24-2H well in Barnhart, which was drilled later in the year than originally planned. 
  
  

Corporate Update

• Change to 31 December financial year end - In order to position Molopo more favorably in the North American operating and financial markets, we have elected to change our financial year end from 30 June to 31 December, which will take effect for the year end 31 December 2012. Molopo will report stub year financial statements for the 6 month period from 30 June to 31 December 2012, and report annually at each 31 December year end thereafter. As a result, Molopo's Annual General Meeting (AGM) will be held on or before 31 May 2013.
  
  
• Change to US Dollar presentational currency - Given our operational focus in Texas, the majority of Molopo's realized revenues and capital expenditures are denominated in U.S. dollars. As a result, we will change our presentational currency from Australian dollars to U.S dollars effective 1 July 2012. 
  
  
• Results of 2012 AGM - At the Company's AGM on 22 November 2012 (Australia), all resolutions were passed with the exception of the amendment to Molopo's constitution which required a 75% approval, and achieved a 69.24% approval. This resolution was requesting that directors seek re-election annually at Molopo's AGM if our shares are listed on a North American exchange. Presently, Molopo's constitution provides that a director must resign and seek re-election at the third AGM after that director was elected. Further, it was proposed that the number of directors be at least three and not more than seven, with the Board having discretion to increase the maximum number. There are no negative implications arising from the resolution not being approved, as the North American exchange merely requested that we put the vote to our shareholders prior to seeking a listing. Regardless of the outcome, the Exchange's requirement has been satisfied. However, assuming we move forward with a listing, the Exchange will require that Molopo put a similar resolution to shareholders again in 3 years. 
  
  
• Share Price - The trading price of Molopo's shares came under pressure in mid-November following the announcement by MSCI Inc. that Molopo was one of 16 companies removed from the MSCI Global Small Capitalization Index - Australia. As a result of this change, certain funds that track the index had to rebalance their portfolios to adjust for the additions and deletions from the index. While the price of our shares recovered somewhat, we continue to feel that we are undervalued in light of our strong cash position and high quality asset base. With ongoing aggressive marketing of our story to new and existing investors, coupled with continued positive results, we believe that the significant short term value disruption and volatility we are experiencing in the market will be addressed.
  
  

Outlook

• Molopo continues to be very well capitalised, and expects to exit calendar year 2012 with approximately $72 million in cash, while still investing in its capital expenditure program focused in Texas.
  
  
• Upcoming catalysts for Molopo include the results from our Baggett 54-1H well and Barnhart 24-2H well, along with the further stabilization data from our other wells drilled in Texas. These data points will drive our budget for 2013, as well as confirm our 2012 calendar year exit rate. Additional catalysts will also include a decision regarding a North American listing, and continued marketing of Molopo's investment thesis to new global investors.
  
  

This press release contains certain forward-looking statements. These statements relate to future events or future performance of the Company. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to certain events, and are subject to a number of risks, uncertainties and assumptions. Many factors could cause Molopo's actual results, performance, or achievements to materially differ from those described in this press release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in other public disclosures made by the Company or this press release as intended, planned, anticipated, believed, estimated, or expected. Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be produced profitably in the future. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary declaration. These statements speak only as of the date of this press release. The Company does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.