Falcon Oil & Gas Ltd., a Toronto listed and Dublin headquartered company focused on unconventional oil and gas exploration and producing assets in Australia, Hungary, and South Africa, announced Wednesday that it has entered into an Agreement (the Agreement) with Chevron Business Development South Africa Limited (Chevron) which allows both parties to jointly co- operate together in order to seek unconventional exploration opportunities in the Karoo Basin, South Africa.
Falcon currently has a Technical Cooperation Permit (TCP), which gives Falcon exclusive rights to obtain an Exploration Permit covering approximately 7.5 MM acres in the southern part of the Karoo basin.
The Agreement today 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 and as such, there will be future announcements by Falcon when an Exploration Permit is awarded.
Chevron will make 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."
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