South Africa’s First Onshore Gas Production Right Goes to Molopo

Molopo Energy Ltd. (ASX:MPO) announced that Molopo South Africa Exploration has been awarded South Africa’s first onshore gas production right for a 200,000 hectare area in the Free State province.

As quoted in the press release:

The initial phase of development of this project will be the tie-in of 4 of the 11 pilot production wells where gas flow of approximately 1.2 mmcf/d continues. Commercialisation of initial volumes of ~600 mcf/d of natural gas is anticipated to be through the provision of Compressed Natural Gas for transportation. The timing and detailed scope of these development plans will be finalised over the coming months. However, the capital investment outlined in the production right is approximately A$2.4 million in the first year, A$3.9 million in the second year, and A$8.6 million in the third year; totalling A$14.9 million over the three year period.

Click here to read the full Molopo Energy Ltd. (ASX:MPO) press release.