JOHANNESBURG (miningweekly.com) – Unconventional gas explorer Challenger Energy plans to raise $900 000 through the placement of 30-million new fully paid ordinary shares.
“This commitment will fund the progression of the licence application process in South Africa, working capital and the cost of the offer. It is a further strong vote of confidence in Challenger and the shale gas potential within its Karoo Basin acreage application,” said MD Robert Willes.
ASX-listed Challenger’s subsidiary Bundu Gas and Oil Exploration was planning to explore for shale gas across some 3 500 km2 in the Karoo Basin.
The South African government earlier this month said the first exploration for shale gas was likely to get under way in the next financial year.