Challenger Energy - Sth African Media Reports Govt to Proceed with Shale Gas Development
Challenger Energy (ASX:CEL) has responded to South African media speculation, following reports that the Government intends to proceed with shale gas development. The Mineral Resources Minister indicated during interviews that the amendments to the Mining & Petroleum Resources Development Act will be finalised by June and that shale gas developments would be supported.
PERTH: Unconventional oil and gas explorer Challenger Energy Limited (ASX code: CEL) advises that a number of South African news outlets have reported that, during a community engagement meeting on shale gas development at Richmond in the Northern Cape, South African Mineral Resources Minister Mosebenzi Zwane stated that:
“Based on the balance of available scientific evidence, government took a decision to proceed with the development of shale gas in the Karoo formation of South Africa”
and that:
“The finalisation of Mineral and Petroleum Resources Development Act (MPRDA) amendments will also help to expedite the development of shale gas.”
This follows a radio interview in February during which the Minister stated that the MPRDA should be “finalised by June”.
Challenger welcomes these positive indicators of progress towards the finalising of key legislation and the determination of the applications for exploration rights received by the government.
Links to South African news reports and the radio interview may be found on Challenger’s website.
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