South Africa Begins Processing Falcon's Shale Gas Exploration Application

Dublin based Falcon Oil & Gas announced Monday that Petroleum Agency of South Africa (PASA) has commenced processing company’s application for a shale gas exploration licence in South Africa's Karoo Basin.

The PASA has requested Falcon to review and update its already drafted Environmental Management Programme where necessary. In accordance with the South African Mineral and Petroleum Resources Development Act 2002, Falcon is required to notify and consult with communities and parties in respect of any such revisions.

The company has been requested to complete this process by 27 February 2015.

“We are encouraged by these developments and will work to meet all the requirements set by the PASA. The 7.5 million acres in the Karoo Basin, for which Falcon is seeking an exploration licence, are geologically prospective with the Whitehill shale believed to be thick, organically rich and thermally mature. We will update shareholders as and when appropriate.” Philip O'Quigley, CEO of Falcon commented.

Falcon was granted a Technical Cooperation Permit (TCP) in 2009 covering 7.5 million (30,327 km2) acres in the southern part of the Karoo Basin. The TCP gives Falcon an exclusive right to an exploration licence to find commercial hydrocarbon deposits over all or part of this area.

In December 2012, the company announced a cooperation agreement with Chevron Business Development South Africa. The agreement enables Falcon to work exclusively with Chevron for a period of five years in jointly obtaining exploration licences.