Molopo set to sell coal seam gas assets

Company News

Molopo Energy Limited (ASX:MPO) has entered into an agreement with oil and gas giant PetroChina for the sale of its coal-seam gas assets in Queensland’s Bowen Basin.

$41 million has been agreed as well as a $2.4 million adjustment for working capital. The transaction is subject to regulatory approval from Australian and Chinese authorities.

Molopo’s Chief Executive says the agreement represents its strategy of focusing on its Texas Wolfcamp play.

The proceeds of the sale will be put towards the intensive development of the North American oil asset.

In the first half of the 2012 financial year Molopo Energy booked a net loss of $6.3 million.