CALGARY, ALBERTA--(Marketwire - Aug. 29, 2012) - Molopo Energy Limited ("Molopo" or "the Company") (News - Market indicators) is pleased to report that preliminary results from the Linthicum Washington 36-2H, Molopo's first well in its Barnhart acreage in the Permian Basin of West Texas, are meeting expectations. The well has been on gas lift for 16 days producing for a total of 299 hours. Through this period, cumulative production totaled 2,282 barrels oil, 3,598 mcf natural gas and 19,693 barrels of load fluid, and the load fluid recovered to date represents 14.8% of the total fluid. Over the last 24 hour period ending Aug 28 (North America), the well produced 525 barrels oil, 895 mcf gas and 1,171 barrels load fluid. Based on data obtained from the processing facility, anticipated sale NGL ratios are expected to be approximately 70-80 bbl / mmcf. The oil rate is continuing to improve as overall load fluid recoveries increase, and the initial clean up of the well is performing consistently with offset wells in the area. The Company will provide further updates on the well once it has stabilised.
As a result of these positive indications on the first well in this area, Molopo has spudded its second Barnhart well at Linthicum Washington 36-1H and will further focus on this highly prospective acreage.
In Fiesta acreage in Texas, completion continues on the Baggett 16-1H well with expectations that flow back will commence in the coming days, and completion of the drilled Baggett 40-2H well is expected to commence in mid September.
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.
Molopo Energy Limited is an ASX-listed oil and gas exploration and production company. The company is focussed on the development of its shale oil resource play in the Permian Basin, Texas, USA. The company also has unconventional oil assets in the Williston Basin, Saskatchewan, Canada, shale gas assets in Quebec, Canada, a CBM project in Australia (under divestment) and onshore gas projects in South Africa.
