Molopo Energy has successfully negotiated the purchase of its partner’s 22 percent interest in the Fiesta project in the Permian Basin, West Texas for a total consideration of $9 million. The transaction is expected to close on 17 April 2012, subject to confirmation of title due diligence, with an effective date of 1 April 2012.

This acquisition adds a further 5,423 net acres, or 8.5 sections, to the Company’s position in the Permian, bringing Molopo’s total Fiesta project acreage to ~25,000 acres. It provides Molopo with a 100 percent interest in the project (subject to 20 percent back in rights after pay out).

Tags: Molopo Energy