Molopo Energy Ltd. announce that a production right has been awarded to Molopo South Africa Exploration over an area of approximately 200,000 hectares in the free state province in South Africa.

An estimate of Molopo SA's reserves and resources in the Virginia license area was performed during the exploration phase in 2010. At that time, the P1 reserves were estimated at approximately 9.2 Bcf and P2 reserves of approximately 23.0 Bcf, and the production right application was based on this exploration work. Molopo's overall net interest in the project is 80% after BEE and government participation.

The initial phase of development of this project will be the tie-in of four of the 11 pilot production wells where gas flow of approximately 1.2 MMcf/d continues.

Commercialization 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 finalized over the coming months.

In the longer term, the full field development could result in the development of more than 200 wells, depending on success in further delineation of the resource as well as progress on gas commercialization opportunities.