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Bankroller for Challenger
An Australian explorer aiming to produce shale gas in South Africa,Challenger Energy Ltd., is in advanced talks with a potential bankroller and key partner. Challenger wants to make the most of its asset. The company put its foot in the door in South Africa’s new shale gas frontier, namely theKaroo basin, by having its affiliate Bundu Gas & Oil Exploration (Pty) Ltd. apply for 1,000 acre permit in 2010. In fact, it’s the lone junior on the niche market alongside Shell, Falcon and Chevron. A moratorium on exploring the Karoo basin was lifted by the authorities in Pretoria at the end of 2012 and permits are expected to be awarded any time now. Even though there’s the possibility of a new moratorium, it won’t concern applications already submitted. To lure a potential partner with deep pockets, Challenger Energy pointed to the severe energy crisis gripping South Africa and the urgent need of the national power utility Eskom for additional capacity. The price of gas surged by 101% in 2012 and by 24% last year. Pretoria has set itself the target of doubling its capacity to reach 89 GW by 2030.