Utah Oil Shale Project 2010 Update ¡ Oil Shale Symposium Colorado School of Mines ¡ October 2010 Prepared By: Oil Shale Exploration Company
OSEC Utah Properties
OSEC UTAH PROPERTIES ¡ 30,634 ¡ ¡ Con*guous ¡Acres ¡ ¡ ¡ ¡ 3.5 ¡Billion ¡ In-‑Place ¡Barrels ¡ ¡ ¡ ¡ 2.1 ¡Billion ¡ Recoverable ¡Barrels ¡ ¡ ¡
Major Milestones in 2009 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
Commercial Feasibility Study ¡ OSEC Utah Oil Shale Project Commercial Feasibility Study OSEC Mitsui Petrobras CFS Support CFS Support CFS Management 50,000 Barrel Per Day Property RD&D Commercial Feasibility Study Management Lease Program Business Engevix Management Lead Eng. Firm/Process Design ¡ Norwest JBR Sage Geotech CTGS Resource/Mining Environmental/Permitting Geology/Mining Geology
CFS Production Plan • 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 Crude Oil Price Forecast • 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 Hydrotreating Test Results Hydrotreating Test Results Cut Points Description % Total Weight IBP – 170 O C Naptha 9.0% 170 – 240 O C Jet 18.8% 240 – 360 O C Diesel 37.2% 360 – 540 O C Heavy Gasoil 33.8% 540+ O C 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.)
Oil All-In Production Cost Per Barrel Comparative ¡ $120.00 ¡ $110.00 ¡ $100.00 ¡ $90.00 ¡ $80.00 ¡ $70.00 ¡ $60.00 ¡ Hight ¡Cost ¡ EsBmate ¡ $50.00 ¡ Low ¡Cost ¡ EsBmate ¡ $40.00 ¡ $30.00 ¡ $20.00 ¡ $10.00 ¡ $0.00 ¡ OSEC ¡Oil ¡Shale ¡ Oil ¡Sands ¡ Deep ¡Water ¡ CO2 ¡EOR ¡ EOR ¡ ArcBc ¡ Gas ¡To ¡Liquids ¡ Coal ¡To ¡Liquids ¡ Source: OSEC Oil Shale Production Cost – Commercial Feasibility Study 2008-2009 All Other Production Methods – IEA World Energy Outlook 2008 Figure 9.10
CFS Environmental Assessment • 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
OSEC 2010 Project Activity • 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
Core Hole Drilling & Testing ¡
Vernal Core Storage Facility ¡
Geology Work ¡
Environmental Monitoring Station ¡
Energy Independence … ¡ The Time is Now ¡ Oil Shale … Part of the Energy Solution
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