Mining Weekly reported that Challenger Energy Ltd. (ASX:CEL) announced that its subsidiary Bundu Gas and Oil Exploration is aiming to explore for shale gas in Karoo, South Africa.
Mining Weekly reported that Challenger Energy Ltd. (ASX:CEL) announced that its subsidiary Bundu Gas and Oil Exploration is aiming to explore for shale gas in Karoo, South Africa. The company said that it expects to pursue its exploration program in parallel with the government’s two-year strategic environmental assessment (SEA) of shale gas development in the country.
As quoted in the market news:
Government formally launched the R12.5-million SEA earlier this week in an effort to develop the “evidence base it needs to make informed decisions regarding the exploitation of shale gas”. Challenger Energy tells Engineering News Online that it is supportive of South Africa’s efforts to ensure safe and sustainable exploration and development and that it does not view the SEA as a major risk to its exploration plans. Government has also indicated that the study is not intended to delay the start of exploration activities.
In February, Bundu submitted an updated Environmental Management Programme to the Petroleum Agency South Africa and Challenger says it expects the Department of Mineral Resources to publish a Gazette notice in the coming weeks outlining the regulations governing the exploration phase. Bundu’s exploration right application is based on an initial work programme that does not include hydraulic fracturing, or fracking, so “we expect to be able to proceed in parallel” with the SEA.