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Molopo Energy Limited : Quarterly Report for the 3 Months Ended 31 December 2012

CALGARY, ALBERTA -- (Marketwire) -- 01/30/13 -- Molopo Energy Limited (ASX:MPO)


--  Corporate production averaged 917 barrels of oil equivalent per day
    (boe/d) during the Quarter, 124% higher than the 409 boe/d produced in
    the prior quarter. Production was comprised of 65% oil and natural gas
    liquids (NGLs) and 35% natural gas; 
--  Announced preliminary and 30 day results from Baggett 54-1H, the first
    Bench B well drilled in Fiesta, which were consistent with the two Bench
    A wells previously drilled in the area; 
--  Divested its interest in the Queensland natural gas assets on 1 November
    for gross proceeds of AUD$41 million plus a AUD$2.4 million adjustment
    for working capital; 
--  Continued to maintain a very strong balance sheet with an estimated
    US$71 million in cash at the end of the Quarter, which will
    significantly contribute to the execution of Molopo's go forward
    strategy; and 
--  Subsequent to the end of the quarter, announced the appointment of Mr.
    Steven Cloutier as Chief Executive Officer and Managing Director
    effective 17 January 2013.

Update for Second Quarter Ended 31 December 2012 and January 2013 Monthly Update


Molopo invested all US$22.3 million of its capital program during the Quarter to drilling and completing the final 2 wells of its 2012 program in the Wolfcamp formation in West Texas, as well as some additional completion costs from wells drilled in the prior Quarter. The first Bench B well in Fiesta, Baggett 54-1H, was drilled and completed through October and November, with results announced in December that were consistent with earlier Bench A wells drilled. The sixth and final well in the 2012 program, Linthicum Washington 24-2H in Barnhart, was drilled and completed through November and December and commenced flow-back on 30 December 2012. Since coming on production, 24-2H achieved a peak 24 hour rate of 456 boe/d comprised of 45% oil & NGL's, and 55% natural gas.

For the month of December, production was 931 boe/d, weighted approximately 63% to light, sweet crude oil and liquids, and 37% to natural gas, with Texas contributing 87% and Saskatchewan contributing the balance. Molopo's average production through the Quarter of 917 boe/d was comprised of approximately 65% light, sweet crude oil and liquids, and 35% natural gas, with Texas contributing 85% and the balance from Saskatchewan.

Molopo is currently focused on developing a capital budget for 2013 which builds on all the asset development knowledge gained in 2012. This is expected to be finalized, approved and communicated to shareholders within the first quarter.


On 1 November 2012 Molopo closed its previously announced sale of its Queensland asset for gross proceeds of AUD$41 million plus a AUD$2.4 million working capital adjustment. At the end of the Quarter, Molopo's cash balance was approximately US$71 million, and the Company has no debt.

In order to position Molopo more favorably in North American operating and financial markets, the Company's financial year end was changed to 31 December from 30 June, and its presentational currency was changed from Australian to US dollars effective 1 July 2012. As a result of the change to year end, Molopo will report stub year financial statements for the 6 month period from 30 June to 31 December 2012, and report its full year results as at each 31 December year end thereafter. Molopo's 2013 Annual General Meeting (AGM) will be held on 23 May 2013.

With the view to delivering a strategy of maximizing the return to shareholders from the Company's current assets, the Board of Directors appointed Mr. Steven Cloutier as Chief Executive Officer and Managing Director of Molopo subsequent to the end of the Quarter, succeeding Mr. Tim Granger. In concert with a special Board committee, Mr. Cloutier is working to develop and implement a renewed approach to executing on the organization's North American strategy, including a capital budget for 2013.

QUARTERLY FINANCIAL & PRODUCTION SUMMARY                                    
Figures are Molopo net                      Three Months Three Months       
 in US dollars                              Ended 31 Dec Ended 30 Sep Change
 (accruals basis)      CANADA     USA OTHER          '12          '12      %
Exploration &                                                               
 incurred(1)($'000)         -  22,254     -       22,254       25,762  (14%)
Sales Volume (Boe)     12,416  71,935     -       84,351       36,895   129%
 Proceeds(1)($'000)       994   3,018     -        4,012        2,492    61%
(1) Sales proceeds is the gross amount from production before royalties and 
    operating costs.                                                        

To access the Appendix 5B, please visit the ASX Announcements page of Molopo's website at www.molopo.com.au.


No new drilling activity was undertaken through the month. Until Molopo has confirmed and communicated its 2013 budget, operational activities will be limited to maintaining existing wells with a view to optimizing production.

Molopo will provide future operational updates on its development activities on a quarterly basis or as circumstances warrant, in accordance with ASX policies.

About Molopo Energy Limited           Molopo Energy Snapshot                
Molopo Energy Limited is an oil and   ASX Code: MPO                         
gas exploration and production        Share Price(1): AUD$0.33              
company listed on ASX under code      Market Cap(1): AUD$81MM               
'MPO', with management based in       Net Cash(2): US$71MM                  
Calgary, Alberta, Canada. Supported                                         
by a strong balance sheet, the        1. Market figures as at 30 January    
Company has been predominantly        2013                                  
focused on the development of its     2. Balance sheet amounts as at 31     
Wolfcamp shale oil resource play in   December 2012                         
the Permian Basin, Texas, USA. In                                           
addition, Molopo also has oil assets                                        
in Saskatchewan, Canada; an onshore                                         
gas project in South Africa, and a                                          
shale gas asset in Quebec, Canada.                                          

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
Steve Cloutier
Managing Director & CEO
+1.403.648.3594 Direct

Molopo Energy Limited
Cindy Gray
VP Capital Markets
+1.403.648.8026 Direct

Molopo Energy Limited
+ 61 3 9618 8704 (Australia local)
[email protected]

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