Molopo Announces 2013 Capital Budget and Outlook
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 04/08/13 -- Molopo Energy Limited (ASX: MPO) ("Molopo" or the "Company") today announces its 2013 capital expenditure budget and outlook. All dollar figures quoted herein are US dollars.
Introduction
Following the appointment of Steve Cloutier as Managing Director and Chief Executive Officer in January, Molopo undertook a review of the execution of the Company's North American strategy. This process was implemented primarily to assess the optimal deployment of Molopo's remaining cash balances relative to the continued development of its Permian Basin lands in West Texas, where the Company holds an interest in approximately 26,000 net acres prospective in the Wolfcamp shale oil play. At March 31, 2013 the Company had approximately $64 million in cash, which reflects payment of the remaining costs related to the Company's 2012 drilling and completions program.
Although capital investment in the Wolfcamp during calendar year 2012 resulted in a significant production increase relative to prior year-end levels, higher costs and lower initial production rates did not match estimates. Accordingly, while Molopo continues to believe that the Wolfcamp offers significant potential value for its shareholders, its board of directors has approved a capital expenditure budget for 2013 and a go-forward plan that reduces drilling activity and focuses on cash preservation. Concurrently, the Company will be retaining a financial adviser to assist it in the identification of potential strategies for maximizing the value of its Wolfcamp land and production for the benefit of its shareholders (the "Wolfcamp Value Maximization Process").
Budget
Molopo's 2013 capital expenditures will be allocated predominantly to activities that preserve the Company's acreage and will be timed so that minimal capital will be spent while it moves forward with the Wolfcamp Value Maximization Process.
Highlights of the 2013 capital budget are as follows:
Molopo does not anticipate allocating significant development capital during 2013 to its other operating areas. In that regard, the Company's plans are as follows:
Given the foregoing activity level, the Company expects its 2013 production to average 700-750 barrels of oil equivalent ("boe") per day, comprised 30% of crude oil, 25% of natural gas liquids and 45% of natural gas (exit 2012 production was approximately 950 boe/d). This estimate does not take into account any of the business development processes listed above; but does assume that Molopo will drill one Wolfcamp well at Barnhart during the fourth quarter, as outlined above (with no impact on 2013 average production rates).
In conjunction with execution of the capital budget and consistent with the over-all goal of cash preservation, Molopo will be undertaking an initiative to reduce general and administrative expenses.
Deployment of Remaining Cash Resources
Molopo's cash resources represent a significant asset that Molopo is committed to allocating prudently. Pending the outcome of the above-noted initiatives, the cash could be considered for provision to Molopo's share of joint venture drilling in the Wolfcamp (if any); potential distribution to shareholders (in an amount and at a time yet to be determined); a share buy-back; or a combination of the foregoing. At this time, it is not anticipated that any capital will be deployed into acquisitions.
Conference Call
Steve Cloutier, Managing Director and Chief Executive Officer, will host a conference call to discuss the 2013 budget and outlook on April 9 (Australia) / April 8 (North America). The call will be open to analysts, investors, and all interested parties. Details to access the call follow:
Participants in the U.K and most European countries may access the call by dialing 00-800-2787-2090.
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 law.
Contacts:
Molopo Energy Limited
Steve Cloutier
CEO
Canada: +1.403.264-7778 or Australia: +(61 3) 9618 8722
Molopo Energy Limited
Cindy Gray
VP Capital Markets
Canada: +1.403.264-7778 or Australia: +(61 3) 9618 8722
Molopo Energy Limited - Registered Office
c/- First Advisers Pty Ltd
Suite 604, Level 6, 309 Kent Street Sydney,
NSW 2000 Australia
P.O. Box H206, Australia Square NSW 1215
Telephone: (61 3) 9618 8722 / Facsimile: (61 2) 8011 0359
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Datum: 08.04.2013 - 22:32 Uhr
Sprache: Deutsch
News-ID 246962
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Oil & Gas
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