Falcon and Chevron Join Forces in Karoo Basin

Falcon Oil & Gas Ltd. and Chevron Business Development South Africa Ltd. have entered into an agreement which allows both companies to jointly seek unconventional exploration opportunities in South Africa’s Karoo Basin.

Falcon currently has a Technical Cooperation Permit (TCP), which gives it exclusive rights to obtain an exploration permit covering approximately 7.5 million acres in the southern part of the Karoo basin. The newest agreement provides for Falcon to work exclusively with Chevron for a period of five years in jointly obtaining exploration permits in the Karoo Basin subject to the parties mutually agreeing participation terms applicable to each permit.

Chevron will make an immediate cash payment of up to $1 million to Falcon as a contribution to past costs and from today will work with Falcon to secure exploration permits.

Philip O’Quigley, CEO of Falcon commented: “Today’s Agreement with Chevron is a major step forward towards realizing the full potential of our already significant acreage position in the Karoo Basin currently held under a TCP. Chevron has over 100 years of experience of working in South Africa but even more importantly has extensive experience in commercially and sensitively developing unconventional oil and gas resources. This agreement is an encouraging endorsement of the management’s confidence in the potential of the Karoo and we look forward to making future announcements when an Exploration Permit is awarded.”

http://www.falconoilandgas.com

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