Update on Value Maximisation Processes Molopo Energy Limited (“Molopo” or the “Company”) is providing this update on the status of the value maximisation initiatives in respect of its Texas and Saskatchewan assets. Molopo had already announced (media release dated September 13, 2013) that it had entered into an agreement to dispose of its interests in an on-shore gas play located in the Republic of South Africa. Closing is expected to occur by year-end and is subject to government approval. Expressions of interest for Texas and Saskatchewan continue to be evaluated. Until definitive agreements are entered into (of which there is no certainty), Molopo is unable to provide any comments on the detail of these deliberations. Update for Third Quarter Ended 30 September 2013 Production during the quarter averaged 572 barrels of oil equivalent per day (“boe/d”), comprised of 200 barrels per day (“bbl/d”) of oil, 130 bbl/d of NGL and 1.45 million cubic feet per day of natural gas. Of these volumes, 54 boe/d was derived from the Company’s assets in Saskatchewan, with the balance from Molopo’s Texas operations. Administrative expenditures for the quarter amounted to US$1.6 million, versus US$3.2 million for the same period last year. This decrease is reflective of the Company’s comprehensive, ongoing cost-reduction plan. Molopo spent US$1.7 million on lease renewals in Texas during the third quarter. Pending the outcome of the Texas value maximization process, the Company will continue to assess whether to proceed with additional lease-retention expenditures as well as the previously-announced horizontal well at Barnhart. At 30 September 2013, Molopo had US$53.5 million of cash in the bank. Molopo’s board of directors will be assessing the optimal use of the Company’s cash resources, which may include any or a combination of a dividend to shareholders, redeployment into the acquisition and development of other oil and gas properties, or a share buy-back.
MPO Price at posting:
19.5¢ Sentiment: Hold Disclosure: Held
