Molopo’s managing director Stephen Mitchell put a brave face on this set-back.
“This is a pleasing result, given the correction in the market that occurred after the SPP price was set,” he said, referring to the recent slide in the company’s shire price.
“The funds from the share purchase plan will be used to strengthen Molopo’s financial position and contribute towards the continued development and appraisal of Molopo’s energy portfolio,” Mitchell said.
Molopo aims to drill additional development wells at Mungi to boost cash flow and increase reserves to meet Ergon’s requirements.
It also plans to fund its share of additional wells at Gloucester, NSW and increase its equity stake in that prospect to 30%. Molopo will also fund new work at the Mason County project in West Virginia, USA, and add to its acreage position there.