Our two oil shale leases comprise of five blocks covering 2,919 acres in Uintah County, Utah. Independent natural resources consultants SRK Consultants Ltd has declared a surface mineable JORC compliant Measured Resource of 126 million barrels on the main tract of our Holliday Block lease.

Introduction to oil shale

Oil shale deposits are generally considered to be sedimentary in origin and to have formed as a result of the deposition of organic matter in anaerobic conditions in lakes and lagoons and the burial of this accumulated material accompanied by normal diagenetic processes. The compaction of these beds, the removal of water, and the increased temperatures and pressures, the material is subjected to then converts the organic matter to kerogen. These are fundamentally the same processes that are considered to have formed oil deposits, but in the case of oil shale deposits, the depth of burial, and consequently the pressures and temperatures the material has been subjected to, have been less and the process has therefore not been so complete.

Coaxing Oil from Shale, Oilfield Review, 2010

Our oil shale industry location in the USA

Key

Area underlain by the Green River formation in which the oil shale is unappraised or low grade

Area underlain by oil shale more than 10ft thick, which yields 25 gal or more oil per ton of shale

Overview of the oil shale industry in the United States

While appraisal of global oil shale is still in its infancy an estimated 2.8 trillion barrels of oil is contained in oil shale worldwide, by far the largest known deposit in the world is the 1.5 trillion barrels of oil Green River Formation in the United States, which occurs in a sparsely populated area covering parts of Colorado, Utah and Wyoming. To put Green River Formation into perspective, worldwide proved oil reserves at the end of 2011 was 1.7 trillion barrels of oil, so bringing it into commercial production would almost double worldwide oil reserves. Accordingly, the Green River Formation has the potential of returning the United States to being a net exporter of oil for the first time since World War II.

Industry Potential

2.8 trillion barrels

2.8 trillion barrels of oil is contained in oil shale worldwide.

1.5 trillion barrels

The largest known deposit in the world is the 1.5 trillion barrels of oil Green River Formation in the United States.

1.7 trillion barrels

Oil reserve at the end of 2011 was 1.7 trillion barrels of oil, so bringing it into commercial production would almost double worldwide oil reserves.