Molopo Gets Nod for Queensland CSG Asset Sale

Molopo Energy Limited has received regulatory nod for the sale of its coal seam gas assets in Queensland to PetroChina.

Australia’s Foreign Investment Review Board has given the green signal to the transaction and it still requires National Development and Reform Commission approval. The Commission’s response is expected by the end of September 2012. The transaction will close 30 days following receipt of the NDRC approval.

In July, 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 Molopo’s existing strong cash position, will be used to fund its 2013 capital program it enters 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.