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Molopo Energy sold its Bowen Basin, Mungi coal bed methane gas field, near Moura in Queensland, to PetroChina International Investment (Australia) Pty Ltd, in August 2012. The gas field has been producing coal seam gas since 2004. The sale included coal bed methane exploration permits covering 1,370 square kilometres over five project areas.

Mungi Coal Bed Methane Gas will Supply gas for the new LNG Plant at Fishermans Landing
PetroChina International Investment (Australia) Pty Ltd owns and operates gas producing and natural gas tenements in Australia. The company, that was incorporated in Australia in 2011, is wholly owned by giant Chinese gas producing company PetroChina International Investment Company Limited. PetroChina plan to supply Mungi coal bed methane gas to Liquefied Natural Gas Limited's proposed Fisherman's Landing Export facility at Gladstone.

Molopo Australia Initially Developed the Mungi Coal Bed Methane Gas Field
Gas sales from the Molopo Australia owned Mungi coal bed methane gas wells grew as the gas field expanded and in one, two month period in 2005, production increased by more than 57 percent. This increase was attributed to two of the initial three Mungi wells, 14, 16 and 17, coming online. This lifted production to 1,636,000 cubic feet of methane gas a day. A similar increase in gas production continued as the water level declined allowing desorption of gas from the coal seam to occur. All the gas produced was initially sold to Origin Energy.

Mungi Coal Bed Methane Horizontal Wells Lifted Production
The next series of production wells at the Mungi coal bed methane gas field were horizontal wells following on the success of the Mungi 2 horizontal well that produced strong gas production results. Mungi 2 horizontal well produced gas at the rate of 240,000 cubic feet a day. The Mungi 2 production well represented a breakthrough as far as completion technology was concerned in that it translated into significantly higher production and recovery rates per well, along with lower development costs.

The Mungi Coal Bed Methane Gas Field is the Closest Gas Field to the Important Gladstone Heavy Industrial Area
The Mungi coal bed methane gas field's closeness to Gladstone is also an important feature in that it is at Fisherman's Landing at Gladstone where Gladstone LNG is developing a 3.8 million tonnes a year liquefied natural gas (LNG) Plant. This plant will treat and liquefy the gas from the Mungi field to create LNG for loading onto special LNG carriers for exporting to Asia.

The primary source of gas to supply Train 1 at the Gladstone LNG plant will be supplied by gas from the Mungi coal bed methane gas field along with third party gas resources that are to be arranged under contract with PetroChina. PetroChina will own all the gas produced at the Gladstone LNG plant as well as being responsible for all the LNG shipping out of Fishermans Landing.
PetroChina is a sister company of Huanqiu Contracting and Engineering Corporation (HQC) being its major shareholder. HQC is fully owned by China National Petroleum Corporation (CNPC), the PetroChina Groups largest shareholder.





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