Falcon Oil & Gas Expects to Get South Africa Shale Gas Permit Later This Year

Dublin based Falcon Oil & Gas is most likely to get permit to explore for shale gas in Karoo basin in South Africa in the second half of the year after technical regulations are published, reports news agency Bloomberg.

“Our focus will be South Africa over the next 12 months,” Chief Executive Officer Philip O’Quigley told Bloomberg in an interview.

In December 2012, Falcon entered into an exclusive cooperation agreement with Chevron to jointly seek unconventional exploration opportunities in the Karoo Basin. The company may sell stake in the asset following the approval, says the news agency.

South Africa published the technical regulations for the development of shale gas for public comments and the final regulations will be released shortly.

Last year, South Africa’s cabinet on approved regulations on shale gas exploration and exploitation.

“The proposed regulations prescribe good international petroleum industry practices and standards, which enhance safe exploration and production of all petroleum - including, but not limited to, shale gas, and will further ensure that petroleum exploration is conducted in a socially and environmentally balanced manner,” Mineral Resources Minister Susan Shabangu said at the time of announcement of the cabinet decision.