PASA Awards Six Junior Companies Exploration Licenses

Photo: Asoko Insight

Six junior mining companies have been awarded hydrocarbon exploration licenses totaling 30 132 km2  in the Northern Cape, North West and Free State, by the Petroleum Agency of South Africa (PASA).

The exploration licenses cover exploratory wells and could yield a gross petroleum resource potential of 1.06 billion barrels of oil. In a bid to show their commitment, the Department of Energy and Minerals and PASA are working on finding alternative sources of energy in the form of oil and gas, to substitute or supplement coal.

ORM Exploration, which is one of the junior companies that was awarded a license, conducted preliminary research into the identified areas with technical cooperation permits.

“It is exciting, as it shows that exploration, particularly onshore is getting the backing it deserves. And we are buoyed by the recent developments around liquefied natural gas prospects, as some of our assets lie adjacent to territories with known gas seepages,” Chris Dorrington, Managing Director of ORM Exploration says.

Alumni Energy Investments CEO Shakes Motsilili highlighted that the companies are forging a big data approach to hydrocarbon exploration and this will be their primary focus for the three-year duration of the new licenses. The licenses allow Alumni Energy Investments to perform on-the-ground activity, including taking soil samples and telluric analysis.

“This is going to require a significant exploration program. It’s a big step towards implementing what we hope will lead to a natural gas to electricity strategy in a relatively short timeframe. Such a large acreage has the potential to change the energy landscape should it lead to even a modest hydrocarbon find,” said Motsilili.

PASA plans to capitalize on the renewed interest in South Africa’s oil and gas exploration, following the announcement made by Total and its partners in February 2019, about a large gas discovery off the South African coast.

Disclaimer
The information on this page may have been provided by a contributor to ChinaGoAbroad, and ChinaGoAbroad makes no guarantees about the accuracy of any content. All content shall be used for informational purposes only. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting such content (including texts, pictures, photos and diagrams) to ChinaGoAbroad for publication. ChinaGoAbroad disclaims all liability arising from the publication of any content/information (such as texts, pictures, photos and diagrams that infringe on any copyright) received from contributors. Links may direct to third party sites out of the control of ChinaGoAbroad, and such links shall not be considered an endorsement by ChinaGoAbroad of any information contained on such third party sites. Please refer to our Disclaimer for more details.
Top