Molopo Energy Limited : Quarterly Report for the 3 Months Ended 31 December 2012

Molopo Energy Limited : Quarterly Report for the 3 Months Ended 31 December 2012 
CALGARY, ALBERTA -- (Marketwire) -- 01/30/13 -- Molopo Energy Limited

--  Corporate production averaged 917 barrels of oil equivalent per day
    (boe/d) during the Quarter, 124% higher than the 409 boe/d produced in
    the prior quarter. Production was comprised of 65% oil and natural gas
    liquids (NGLs) and 35% natural gas; 
--  Announced preliminary and 30 day results from Baggett 54-1H, the first
    Bench B well drilled in Fiesta, which were consistent with the two Bench
    A wells previously drilled in the area; 
--  Divested its interest in the Queensland natural gas assets on 1 November
    for gross proceeds of AUD$41 million plus a AUD$2.4 million adjustment
    for working capital; 
--  Continued to maintain a very strong balance sheet with an estimated
    US$71 million in cash at the end of the Quarter, which will
    significantly contribute to the execution of Molopo's go forward
    strategy; and 
--  Subsequent to the end of the quarter, announced the appointment of Mr.
    Steven Cloutier as Chief Executive Officer and Managing Director
    effective 17 January 2013.

Update for Second Quarter Ended 31 December 2012 and January 2013
Monthly Update 
Molopo invested all US$22.3 million of its capital program during the
Quarter to drilling and completing the final 2 wells of its 2012
program in the Wolfcamp formation in West Texas, as well as some
additional completion costs from wells drilled in the prior Quarter.
The first Bench B well in Fiesta, Baggett 54-1H, was drilled and
completed through October and November, with results announced in
December that were consistent with earlier Bench A wells drilled. The
sixth and final well in the 2012 program, Linthicum Washington 24-2H
in Barnhart, was drilled and completed through November and December
and commenced flow-back on 30 December 2012. Since coming on
production, 24-2H achieved a peak 24 hour rate of 456 boe/d comprised
of 45% oil & NGL's, and 55% natural gas.  
For the month of December, production was 931 boe/d, weighted
approximately 63% to light, sweet crude oil and liquids, and 37% to
natural gas, with Texas contributing 87% and Saskatchewan
contributing the balance. Molopo's average production through the
Quarter of 917 boe/d was comprised of approximately 65% light, sweet
crude oil and liquids, and 35% natural gas, with Texas contributing
85% and the balance from Saskatchewan.  
Molopo is currently focused on developing a capital budget for 2013
which builds on all the asset development knowledge gained in 2012.
This is expected to be finalized, approved and communicated to
shareholders within the first quarter.  
On 1 November 2012 Molopo closed its previously announced sale of its
Queensland asset for gross proceeds of AUD$41 million plus a AUD$2.4
million working capital adjustment. At the end of the Quarter,
Molopo's cash balance was approximately US$71 million, and the
Company has no debt. 
In order to position Molopo more favorably in North American
operating and financial markets, the Company's financial year end was
changed to 31 December from 30 June, and its presentational currency
was changed from Australian to US dollars effective 1 July 2012. As a
result of the change to year end, Molopo will report stub year
financial statements for the 6 month period from 30 June to 31
December 2012, and report its full year results as at each 31
December year end thereafter. Molopo's 2013 Annual General Meeting
(AGM) will be held on 23 May 2013.  
With the view to delivering a strategy of maximizing the return to
shareholders from the Company's current assets, the Board of
Directors appointed Mr. Steven Cloutier as Chief Executive Officer
and Managing Director of Molopo subsequent to the end of the Quarter,
succeeding Mr. Tim Granger. In concert with a special Board
committee, Mr. Cloutier is working to develop and implement a renewed
approach to executing on the organization's North American strategy,
including a capital budget for 2013.  

QUARTERLY FINANCIAL & PRODUCTION SUMMARY                                    
Figures are Molopo net                      Three Months Three Months       
 in US dollars                              Ended 31 Dec Ended 30 Sep Change
 (accruals basis)      CANADA     USA OTHER          '12          '12      %
Exploration &                                                               
 incurred(1)($'000)         -  22,254     -       22,254       25,762  (14%)
Sales Volume (Boe)     12,416  71,935     -       84,351       36,895   129%
 Proceeds(1)($'000)       994   3,018     -        4,012        2,492    61%
(1) Sales proceeds is the gross amount from production before royalties and 
    operating costs.                                                        

To access the Appendix 5B, please visit the ASX Announcements page of
Molopo's website at  
No new drilling activity was undertaken through the month. Until
Molopo has confirmed and communicated its 2013 budget, operational
activities will be limited to maintaining existing wells with a view
to optimizing production.  
Molopo will provide future operational updates on its development
activities on a quarterly basis or as circumstances warrant, in
accordance with ASX policies. 

About Molopo Energy Limited           Molopo Energy Snapshot                
Molopo Energy Limited is an oil and   ASX Code: MPO                         
gas exploration and production        Share Price(1): AUD$0.33              
company listed on ASX under code      Market Cap(1): AUD$81MM               
'MPO', with management based in       Net Cash(2): US$71MM                  
Calgary, Alberta, Canada. Supported                                         
by a strong balance sheet, the        1. Market figures as at 30 January    
Company has been predominantly        2013                                  
focused on the development of its     2. Balance sheet amounts as at 31     
Wolfcamp shale oil resource play in   December 2012                         
the Permian Basin, Texas, USA. In                                           
addition, Molopo also has oil assets                                        
in Saskatchewan, Canada; an onshore                                         
gas project in South Africa, and a                                          
shale gas asset in Quebec, Canada.                                          

This press release contains certain forward-looking statements. These
statements relate to future events or future performance of the
Company. When used in this press release, the words "may", "would",
"could", "will", "intend", "plan", "anticipate", "believe",
"estimate", "predict", "seek", "propose", "expect", "potential",
"continue", and similar expressions, are intended to identify
forward-looking statements. These statements involve known and
unknown risks, uncertainties, and other factors that may cause actual
results or events to differ materially from those anticipated in such
forward-looking statements. Such statements reflect the Company's
current views with respect to certain events, and are subject to a
number of risks, uncertainties and assumptions. Many factors could
cause Molopo's actual results, performance, or achievements to
materially differ from those described in this press release. Should
one or more of these risks or uncertainties materialize, or should
assumptions underlying forward-looking statements prove incorrect,
actual results may vary materially from those described in other
public disclosures made by the Company or this press release as
intended, planned, anticipated, believed, estimated, or expected.
Furthermore, statements relating to "reserves" or "resources" are
deemed to be forward-looking statements, as they involve the implied
assessment, based on certain estimates and assumptions that the
resources and reserves described can be produced profitably in the
future. The forward-looking statements contained in this press
release are expressly qualified in their entirety by this cautionary
declaration. These statements speak only as of the date of this press
release. The Company does not intend and does not assume any
obligation, to update these forward-looking statements to reflect new
information, subsequent events or otherwise, except as required by
Molopo Energy Limited
Steve Cloutier
Managing Director & CEO
+1.403.648.3594 Direct 
Molopo Energy Limited
Cindy Gray
VP Capital Markets
+1.403.648.8026 Direct 
Molopo Energy Limited
+ 61 3 9618 8704 (Australia local)
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