Genie Energy signs agreement to develop oil shale resources in Mongolia

Genie Oil Shale Mongolia, a subsidiary of Genie Energy, has signed a five year agreement with the Petroleum Authority of Mongolia (PAM) to explore and evaluate the commercial potential of oil shale resources on a 34,470km² area in central Mongolia.

As part of the deal, Genie Mongolia will identify and characterise the oil shale resource in the exclusive survey area and will conduct a pilot test by using in-situ technology on appropriate oil shale deposits.

The company will proceed with commercial development on oil shale resources, under a production sharing agreement in line with the Mongolian law.

Genie Energy said that it is the only company that has received an oil shale survey contract in Mongolia.

Genie Energy CEO, Claude Pupkin, said the company has started evaluating Mongolia’s oil shale deposits, after signing a joint survey agreement in 2012.

"Our geological team has located a world-class resource and will now identify the most advantageous areas for future commercial development," Pupkin added.

Mongolia’s Vice Minister of Mining O. Erdenebulgan said that Genie has the appropriate technical expertise to produce oil and gas from oil shale in an environmentally sensitive manner.

Genie Energy includes IDT Energy and Genie Oil and Gas (GOGAS).

GOGAS will produce clean and affordable transportation fuels from the kerogen-based oil shales and other hydrocarbon resources.

The company’s resource development projects include oil shale and oil and gas initiatives in Colorado, Israel, and Mongolia.

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Image: Genie Oil Shale Mongolia will explore and evaluate commercial potential of oil shale resources on a 34,470km² area in Central Mongolia. Photo: Courtesy of colin grice.