The TCP covers an area of approximately 88,000sqkm, primarily located in the Free State and also covering areas in the Eastern Cape and KwaZulu-Natal.
The permit awards the applicants the exclusive right to study the prospectivity for shale gas in the Karoo Basin for a period of up to 12 months, but does not include any surface activity or drilling.
The joint venture partners plan to evaluate existing and available geological information within the area to determine the potential for shale gas.
The study work will include the sampling and analysis of existing geological cores that were drilled by Soekor in the 1970’s and 1980’s during their search for shale oil. The same shale formations are now being assessed for potential gas production.
Sasol said that if the geological evaluation proves successful, the partners will consider committing to a more extensive exploration program in the Karoo Basin.
