Yes further delays are a problem particularly given our cash position.
I went back and had a look at our proposed exploration work plan and I am more confident that the recent decision does not affect PASA's ability to assess/issue an Exploration Right.
The recent regs related to the actual process of hydraulic fracturing which is not relevant in the first stage of exploration.
The summary of the proposed works program is (my highlights)
1
Explore for shale gas in Pearston area
2
Bundu’s total exploration application area: ~4 200km2
• adjacent to Shell, Falcon application areas
• centred on 1968 Soekor exploration borehole
3
Application involves limited activity
• re-assess Soekor data
• water sampling
• exploration drilling No hydraulic fracturing activity at this time
4
Further exploration depends on
outcomes of this limited activity
• not a given
• subject to further consultation
The Exploration Right is a multi year project so the above program is only the first component of exploration. If we find sufficient gas (and water) we would then need to move onto the more detailed including some actual fracking which can't occur until the regs are propserly gazetted.
Thats why I was intrigued by comment that the Mineral Resources Minister Mosebenzi Zwane told Reuters that " the government ....was also considering a period of two years before any drilling started, taking into account various environmental and safety concerns."
That implied to me approval as some level in relation to shale gas exploration but not for actual fracking.
