Explorer Molopo Energy (ASX:MPO) says it has lifted proven and probable reserves at its Queensland coal seam gas fields by over 250%.
The company says the reserve estimate at its Mungi gas field and surrounding areas has increased from 50 to 176 petajoules, giving it the largest 2P reserves position in Queensland not subject to firm supply contracts.
As a result of Molopo’s development focus over the past two years, the company’s share of Mungi reserves should now increase to 71.9%.
In addition, the company says its latest development trial well in the Mungi gas field has set a new production record of 1.8 million cubic feet per day of gas.
Production is continuing to increase as back pressure is reduced and the well is expected to reach a peak rate of about 2 million cubic feet per day of gas.
The company says it intends to continue its reserves expansion activities during 2010 with exploration and appraisal campaigns planned for its Harcourt North and Timmy Prospects.
Molopo Energy reported a profit of $72.59 million for the 12 months to June 30, 2009.