Falcon Oil & Gas poised as South Africa on verge of approving shale rules

South Africa’s nascent shale industry may soon receive a long awaited shot in the arm, as reports suggest the government is set to approve new regulations in a matter of weeks.

Should it finally come to pass it would be great news for AIM quote Falcon Oil & Gas (LON:FOG), an early mover with exposure to 7.5mln acres of the Karoo shale basin.

Karoo, a semi-desert region in central and southern South Africa, has been estimated to contain just shy of 400 trillion cubic feet of shale gas.

Ngoako Ramatlhodi, South Africa’s mineral resources minister, has said that the country’s new shale gas regulations has now been finalised.

“The regulations will go before Cabinet at its next meeting in two weeks,” he told reporters.