Falcon turns its gaze towards South Africa

Drilling to start within weeks at its main fracking project in Australia

Philip O’Quigley: he said he was confident that Falcon could wrap up South African negotiations this year

Philip O’Quigley: he said he was confident that Falcon could wrap up South African negotiations this year

 

Falcon Oil & Gas, a Dublin-based exploration company chaired by industry veteran John Craven, expects to enter negotiations with the South African government on terms for a licence to explore for shale gas in the autumn.

Falcon chief executive Philip O’Quigley said he hoped to start talks with government officials for a three- or five-year exploration licence in the Karoo Basin in September or October.

“I expect that negotiations will last about three months,” he said.

Falcon, which already has a technical permit to assess the Karoo area, has been notified by authorities in South Africa that its application for a full exploration licence is being processed.

Negotiations

Mr O’Quigley said he was confident that AIM-listed Falcon could wrap up the negotiations this year, after which it was likely to seek a farm-out deal with a bigger operator to fund drilling in return for a stake in the licence.

Falcon concluded a similar farm-out deal worth 200 million Australian dollars (€137 million) last year for its Beetaloo fracking project in Australia with larger players Origin and Sasol.