Business
Falcon and Chevron to jointly Explore Karoo Basin in South Africa
TORONTO, Dec. 12, 2012 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) (Falcon), a Toronto lis...
About this update from Falcon Oil & Gas Ltd.
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Dec. 12, 2012 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO)\n (Falcon), a Toronto listed and Dublin headquartered company focused on\n unconventional oil and gas exploration and producing assets in\n Australia, Hungary, and South Africa, announced today that it has\n entered into an Agreement (the Agreement) with Chevron Business\n Development South Africa Limited (Chevron) which allows both parties to\n jointly co- operate together in order to seek unconventional\n exploration opportunities in the Karoo Basin, South Africa.\n\n\nFalcon currently has a Technical Cooperation Permit (TCP), which gives\n Falcon exclusive rights to obtain an Exploration Permit covering\n approximately 7.5 MM acres in the southern part of the Karoo basin.\n\n\nThe Agreement today provides for Falcon to work exclusively with Chevron\n for a period of five years in jointly obtaining Exploration Permits in\n the Karoo Basin subject to the parties mutually agreeing participation\n terms applicable to each permit and as such, there will be future\n announcements by Falcon when an Exploration Permit is awarded.\n\n\nChevron will make immediate cash payment of up to $1 million to Falcon\n as a contribution to past costs and from today will work with Falcon to\n secure Exploration Permits.\n\n\nPhilip O'Quigley, CEO of Falcon commented: \"Today's Agreement with\n Chevron is a major step forward towards realising the full potential of\n our already significant acreage position in the Karoo Basin currently\n held under a TCP. Chevron has over 100 years of experience of working\n in South Africa but even more importantly has extensive experience in\n commercially and sensitively developing unconventional oil and gas\n resources. This Agreement is an encouraging endorsement of the\n management's confidence in the potential of the Karoo and we look\n forward to making future announcements when an Exploration Permit is\n awarded.\"\n\n\nAbout the Karoo Basin\nThe Karoo Basin is large (236,000 mi2), extending across nearly\n two-thirds of the country, with the southern portion (70,800 mi2) of\n the basin potentially favourable for shale gas. A significant portion\n of Falcon's TCP (11,719 mi2) is located within the prospective area,\n along the southern boundary.\n\n\nThe Permian-age Ecca Group has three potential gas shales in the Ecca\n Format...