Genie Energy said that its subsidiary, Genie Oil Shale Mongolia, LLC (Genie Mongolia), and the Petroleum Authority of Mongolia (PAM) have entered into an exclusive oil shale development agreement to explore and evaluate the commercial potential of oil shale resources on a 34,470 km2 area in Central Mongolia.
The five year agreement calls for Genie Mongolia to explore, identify and characterize the oil shale resource in the exclusive survey area and to conduct a pilot test using in-situ technology on appropriate oil shale deposits. Genie may seek to proceed to commercial development via a production sharing agreement in accordance with Mongolian law. To date, Genie Energy is the only recipient of an exclusive oil shale survey contract in Mongolia.
"We started evaluating Mongolia's oil shale deposits after signing a joint survey agreement in 2012, and are very pleased to continue that work under this new agreement. Our geological team has located a world-class resource and will now identify the most advantageous areas for future commercial development," said Claude Pupkin, CEO of Genie Energy. O. Erdenebulgan, Mongolia's Vice Minister of Mining, said, "Utilizing Mongolia's extensive oil shale reserves to reduce our dependence on imported oil is a strategic priority for the Government. We have been impressed by Genie's commitment to Mongolia. They have the appropriate technical expertise to produce oil and gas from oil shale in an environmentally sensitive manner. We look forward to continuing to work with their team."
Michael Jonas, Executive Vice President of Genie Oil & Gas, added, "We share the PAM's goal of reducing Mongolia's dependence on energy imports and developing an export industry that can meet the growing regional demand. Genie Mongolia looks forward to working with the PAM to successfully develop Mongolia's abundant oil shale resources and achieve these goals."
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