(MENAFN- ProactiveInvestors - Australia) Molopo Energy's (ASX: MPO) sale of its Queensland assets to PetroChina Australia is now unconditional after PetroChina received approval from China's National Development and Reform Commission.
The A$43.4 million sale of five permits covering 1,370 square kilometres was previously waved through by Australia's Foreign Investment Review Board and is now scheduled to close on 1 November 2012.
This will allow Molopo to exit 2012 with about A$65 million in cash while still investing in its Texas Wolfcamp oil play.
Molopo has five wells at various stages of drilling and completion, each of which is expected to contribute to the target production of 2,300 barrels of oil equivalent per day before the end of this year.
PetroChina, one of the world's largest oil and gas companies with experience and expertise in coal seam gas, could use gas from the permits to meet its agreement to secure gas supplies for Liquefied Natural Gas Limited's (ASX: MEO) proposed 3 million tonne per annum Fisherman's Landing LNG project.
Molopo's permit areas have the capacity, based on independent assessments, to produce and deliver up to 65 terajoules of gas per day.
This represents about half of the minimum gas delivery volumes required for a Final Investment Decision to be made on the first 1.5MMtpa liquefaction train though it is subject to the agreement of Mitsui E&P Australia, which holds about 33% interests in the permits.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.