Chevron paid Falcon $1 million as a contribution for past costs and agreed to work with Falcon to secure exploration permits. Falcon already holds permission to conduct Karoo seismic studies.

Philip O'Quigley, Falcon chief executive officer, called the Falcon-Chevron agreement "a major step forward towards realizing the full potential of our already significant acreage position in the Karoo basin."

Chevron has more than 100 years experience working in South Africa, O'Quigley said, noting that Chevron holds "extensive experience…developing unconventional oil and gas resources."

Several Gasfrac (GSFVF.PK) investors have been impatiently waiting for Chevron (CVX) to report on its experience after applying the proprietary Gasfrac Liquefied Petroleum Gas (LPG) fracturing process in its $7.3B Piceance basins natural gas development project. Last week Chevron released its 2011 annual report supplement, and the report seems to strongly endorse the LPG fracturing process. From page 56:

Several Piceance Basin wells were completed with multiple-staged, liquefied petroleum gas fracture treatments. This proprietary technology, recognized by the World Shale Gas Conference for its economic and environmental performance potential, significantly increases production while minimizing water usage.

While this endorsement has not translated into a contract yet, as the company continues to evaluate the process' impact on this specific formation. Chevron's unqualified assertion that LPG fracturing increases production is the strongest endorsement yet of the LPG fracturing process by a super major.

Lots of Gas Potential, Water Shortage, LP Gas Fracturing, Chevron Knowledge and Influence make Falcon, Chevron and Gasfrac an interesting trio to watch or better yet - investment and who knows maybe Chevron will own them all. Things are quite and open to speculation - Oilman