Chevron, Falcon to jointly explore South Africa Karoo basin

Falcon Oil & Gas Ltd., Dublin, has agreed to work exclusively with a South African affiliate of Chevron Corp. to seek unconventional exploration opportunities in the Karoo basin in South Africa.

Falcon has a technical cooperation permit (TCP) that gives the independent exclusive rights to obtain an exploration permit on 7.5 million acres in the southern part of the basin (OGJ Online, Sept. 17, 2012).

The new agreement provides for Falcon to work exclusively with Chevron Business Development South Africa Ltd. for 5 years in jointly obtaining exploration permits, subject to the parties mutually agreeing participation terms applicable to each permit. Falcon is to disclose when a permit is awarded. Chevron will advance Falcon $1 million now for past costs.

Falcon noted that the Karoo basin covers 236,000 sq miles or nearly two-thirds of the country, with the 70,800-sq mile southern part of the basin potentially favorable for shale gas. A large part of Falcon’s 11,719-sq mile TCP is in the prospective area, along the southern boundary.

The Permian Ecca Group has three potential gas shales in the Ecca formation. The most promising of these is the highly organic-rich, thermally mature shale of the Whitehall formation. This unit is regionally persistent in composition and thickness and can be traced across most of the basin.

Advanced Resources International Inc., Arlington, Va., estimated the undiscovered petroleum-initially-in-place and the prospective undiscovered resource attributable to these shales on behalf of the US Energy Information Administration. That April 2011 report concluded that the Lower Ecca Group shales contain 1,834 tcf of risked gas in-place with a risked recoverable shale gas prospective resource of 485 tcf.

Related Articles

Warrego Energy signs farmout for tight gas field

02/28/2014 Warrego Energy Ltd., Perth, has signed a $40 million (Aus.) farmout agreement with Dutch exploration and production specialists Dyas BV and Mazarin...

Gas to play key role in curbing China’s pollution, official says

02/26/2014 China plans to develop more domestic natural gas supplies, including some from unconventional sources, and increase its gas imports to reduce its r...

IHS: Canada’s oil sands an economic boon for jobs

02/11/2014 Oil sands production is responsible for significantly boosting Canada’s jobs, economic growth, and government revenue, according to IHS CERA Oil Sa...

Apache plans further development for active Egyptian program

01/30/2014 Apache Corp. has applied for licenses to develop two recent discoveries in the Western Desert of Egypt, where drilling now includes horizontal well...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected