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UPDATE: Sasol In Joint Application To Explore In S Africa



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JOHANNESBURG -(Dow Jones)- Sasol Ltd. (SSL) has jointly applied to explore onshore for petroleum in South Africa with Statiol ASA (STO) and Chesapeake Energy Corp. (CHK), the Johannesburg company said Wednesday.

Exploration will focus on finding commercially recoverable shale gas resources in the Karoo Basin in the central region of South Africa, Sasol said in an emailed statement.

The petrochemicals company said an application submitted to the Petroleum Agency SA Ltd., which is subject to approval from South Africa's government, is expected to take about 12 months.

The Karoo Basin has unproved shale gas potential and significant exploration efforts are required to assess this prospective resource, Sasol said. Shale gas is natural gas produced from a type of sedimentary rock formed from clay and has become an increasingly important source of natural gas in the U.S. over the past decade.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@ dowjones.com


  (END) Dow Jones Newswires
  11-25-090646ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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