South Africa to Process Challenger Energy's Shale Gas Application

Australia listed unconventional gas explorer Challenger Energy on Monday announced that its subsidiary Bundu Gas and Oil Exploration has been advised by the Petroleum Agency South Africa (PASA) that a decision has been taken to proceed with processing Bundu’s application for a shale gas exploration right in South Africa’s Karoo Basin.

“Significant time has elapsed since the application was submitted in 2010, and it is important that the documentation is up to date. PASA has requested that Bundu review and augment its Environmental Management Programme (EMPr) where necessary,” Challenger announced.

In accordance with the Mineral and Petroleum Resources Development Act 2002, Bundu is required to notify and consult with affected communities and parties in respect of any such revisions. Bundu has been requested to complete this process by 27th February 2015.

Challenger Managing Director Robert Willes said: “This is very significant and positive news. The applications for shale gas exploration rights have been on hold since 2011, so the decision to proceed with the processing of Bundu’s application represents a major milestone and signals that the South African Government is ready to move forward with the exploration and appraisal of this potentially vital national resource. We are greatly encouraged by this development, and look forward to engaging with local communities and stakeholders.”

Bundu Gas & Oil Exploration (Pty) Ltd is subsidiary of Challenger Energy Limited, which is owned 90% by Challenger and 10% by Challenger’s Black Economic Empowerment Partners. Bundu holds 100% of exploration permits and applications covering approximately 3,200 square kilometres of highly prospective acreage in South Africa.