The Foreign Investment Review Board has given Molopo Energy Limited (ASX:MPO)
the green light to sell its Bowen Basin coal seam gas assets in Queensland to PetroChina for $43.4 million.
The junior oil and gas explorer inked a deal to sell the assets last month as it moves to focus on its unconventional North American oil assets.
Molopo says the transaction now only requires approval from China’s National Development and Reform Commission, which is expected by the end of September.
Should the sale go through Molopo expects to use the funds to fund its capital program as it embarks upon an intensive development of its Texas Wolfcamp oil acreage.
Molopo Energy reported a net loss of $63.6 million in the 2012 financial year.