Molopo Sells Its Queensland CBM Assets to PetroChina

Molopo Energy Limited agreed to sell its Queensland Bowen Basin coal bed methane assets to PetroChina for A$41 million. The Australian firm will also get A$2.4 million for working capital. 

PetroChina Australia will acquire 100% of Molopo’s coal seam gas assets in Queensland. The sale proceeds, combined with our existing strong cash position, will be used to fund our 2013 capital program as we enter a period of intensive development of our Texas Wolf camp oil acreage.

CEO Tim Granger commented, “We’re pleased to have reached agreement for this sale, which is an important step in our previously stated strategy of focussing on our unconventional North American oil assets.  The sale proceeds, combined with our existing strong cash position, will be used to fund our 2013 capital program as we enter a period of intensive development of our Texas Wolf camp oil acreage.”

The gas from Molopo's assets will most likley be delivered to Liquefied Natural Gas Limited's proposed 3 million tonne per annum LNG project at Fisherman’s Landing, in the Port of Gladstone, .

PetroChina Australia and LNG Ltd will commence negotiation of a Tolling Agreement pursuant to which PetroChina Australia will deliver the gas to LNG Ltd’s LNG Project for liquefaction, storage and loading onto LNG ships arranged by PetroChina Australia. Under the Tolling Agreement, LNG Ltd will receive a fixed Capacity Reservation Fee and also a Tolling Fee calculated on the quantity of LNG loaded onto LNG ships. 

"The proposed Tolling Agreement between PetroChina Australia and LNG Ltd is an important foundation step in LNG Ltd’s gas supply plan for the LNG Project. Discussions and negotiations are continuing on further tolling arrangements, together with potential gas purchase opportunities and direct acquisition of upstream gas resources," LNG Ltd said in a statement.