Utah Oil Shale Project 2010 Update Oil Shale Symposium Colorado - - PowerPoint PPT Presentation

October 2010 Prepared By: Oil Shale Exploration Company

Utah Oil Shale Project 2010 Update ¡

Oil Shale Symposium Colorado School of Mines ¡

OSEC Utah Properties

30,634 ¡ ¡ Con*guous ¡Acres ¡ ¡ ¡ ¡ 3.5 ¡Billion ¡ In-­‑Place ¡Barrels ¡ ¡ ¡ ¡ 2.1 ¡Billion ¡ Recoverable ¡Barrels ¡

¡ ¡ OSEC UTAH PROPERTIES ¡

ü Completed bench scale tests in Brazil ü Selected preferred plant site ü Completed additional drill holes and assay work ü Developed a master project plan and schedule for the commercial development ü Completed 16 task Commercial Feasibility Study

Major Milestones in 2009

Sage Geotech

Geology/Mining

Engevix

Lead Eng. Firm/Process Design ¡

RD&D Lease Program

OSEC Utah Oil Shale Project

Commercial Feasibility Study

OSEC

CFS Support

Petrobras

CFS Management

50,000 Barrel Per Day Commercial Feasibility Study

Property Management

JBR

Environmental/Permitting

Norwest

Resource/Mining

CTGS

Geology

Business Management

Mitsui

CFS Support

Commercial Feasibility Study ¡

• 50,000 Barrels-Per-Day of upgraded shale oil
• 12 Petrosix retorts and 2 hydrotreating units
• Mining plan to produce 30 million tons per year
• 10% of rock mined to a fines retort

CFS Production Plan

• The CFS used projected prices of light sweet crude oil in the

United States as a basis for pricing the OSEC shale oil product. Long term crude oil pricing forecasts from the U.S. Energy Information Administration and Cambridge Energy Research Associates were used in the CFS pricing models.

• CFS price forecasts were impacted by energy consumption and

demand increases as projected for the four “BRIC” countries – Brazil, Russia, India, and China – which will account for over 63 percent of the increase in world industrial energy use by 2030

CFS Crude Oil Price Forecast

CFS Hydrotreating Test Results

Hydrotreating Test Results

Cut Points Description % Total Weight

IBP – 170 OC Naptha 9.0% 170 – 240 OC Jet 18.8% 240 – 360 OC Diesel 37.2% 360 – 540 OC Heavy Gasoil 33.8% 540+ OC Resid 1.2%

Product Characteristics:

• API gravity of 35
• Market premium to West Texas Intermediate crude
• Low sulfur content
• High diesel cut cetane index (57 versus 40 spec.)

$0.00 ¡ $10.00 ¡ $20.00 ¡ $30.00 ¡ $40.00 ¡ $50.00 ¡ $60.00 ¡ $70.00 ¡ $80.00 ¡ $90.00 ¡ $100.00 ¡ $110.00 ¡ $120.00 ¡ OSEC ¡Oil ¡Shale ¡ Oil ¡Sands ¡ Deep ¡Water ¡ CO2 ¡EOR ¡ EOR ¡ ArcBc ¡ Gas ¡To ¡Liquids ¡ Coal ¡To ¡Liquids ¡ Hight ¡Cost ¡ EsBmate ¡ Low ¡Cost ¡ EsBmate ¡

Source: OSEC Oil Shale Production Cost – Commercial Feasibility Study 2008-2009 All Other Production Methods – IEA World Energy Outlook 2008 Figure 9.10

Oil All-In Production Cost Per Barrel Comparative ¡

• JBR Environmental Consultants, Inc. (JBR)

engaged by OSEC, Petrobras, and Mitsui in 2008 to provide an independent assessment

• JBR spent months working with the design

and engineering teams to evaluate, critique, and contribute to the conceptual design in an effort to reduce environmental impacts

• JBR is now confident that the OSEC Utah Oil

Shale Project can successfully obtain all required federal, state, and local permits

CFS Environmental Assessment

• Drill a minimum of 11 core holes to further define

the geology, the resource, the stratigraphy and the structure of the proposed mining horizons

• Perform additional assays and rock mechanics

tests

• Confirm accuracy of the existing geologic data

base, including USGS maps

• Install meteorological and air quality monitoring

station and begin environmental baseline studies

OSEC 2010 Project Activity

Core Hole Drilling & Testing ¡

Vernal Core Storage Facility ¡

Geology Work ¡

Environmental Monitoring Station ¡

Oil Shale… Part of the Energy Solution

Energy Independence… ¡

The Time is Now ¡

www.OilShaleExplorationCompany.com