|AL LAJJUN 15,000 BPD OIL SHALE PROJECT - JORDAN|
1Jordan Energy and Mining
Jordan Energy and Mining Limited is a UK-registered company formed to develop commercial oil shale deposits into liquid products. JEML has entered into a Memorandum of Understanding (MOU) with the Government of Jordan and is close to signing a 40 year Concession Agreement for the development of one of the country’s major Oil Shale resources by using proven open pit mining and surface retorting techniques, developed in connection with the Canadian Tar Sand Industry.
Oil shale is an immature oil source rock containing kerogen, a waxy organic material. The extraction process consists of retorting the oil bearing rock under controlled conditions and condensing the hydrocarbon vapour given off into a synthetic crude oil (SCO) The process is largely self-sustaining and thus external energy consumption is very low. The oil is then fractionated and hydrogenated as appropriate to make a high grade low sulphur synthetic crude oil suitable as a refinery feed stock. Successful Pilot Plant runs of some 100 tons each of JEML oil shale material were completed in Canada in November 2006, December 2008 and June and July 2009 with indicated oil recovery rates of around 90% plus additional energy by products which are turned into electrical power through conventional turbines.
Jordan has very little conventional oil and, since the cessation of low cost oil supplies from Iraq, is urgently seeking partners to develop its huge oil shale resources. JEML has developed an excellent relationship with the Jordanian Natural Resources Authority (NRA) and the Ministry of Energy and Mineral Resources (MEMR) over several years. It is receiving the full support of the Jordanian Government in developing the project.
Jordan possesses at least 100 billion barrels of extractable oil in oil shale (some estimates are higher) and other companies committed to development of these resources include Shell, Petrobras, Total, a Saudi Arabian JV and Eesti Energia who have extensive experience of oil shale processing in Estonia.
The Government of Jordan is strongly supportive to these developments and has provided JEML with a range of additional assurances related to acceptance of JEML shale oil to Jordan’s Oil Refinery at Zarqa, the supply of water and power and the right to move roads and power lines as appropriate. All operating criteria will be incorporated into the Concession Agreement (CA) that is currently at an advanced stage and is planned to be ratified by Parliament by end 2010.
A comprehensive 6-month Pre-Feasibility Study (PFS) was completed in 2007 by major contractors demonstrating full technical and economic viability with attractive cash operating costs of refinery-ready oil and break-even costs after financing of around $40/B. In addition a Competent Persons Report (CPR) to AIM listing standards was completed by IMC Consulting Group underpinning these figures.
A Bankable Feasibility Study (BFS) was undertaken in mid 2008 and completed in July 2009; the funding for this study and support costs ($30M) was raised in a pre IPO (Initial Public Offering) fund raising by Mirabaud Securities in first quarter 2008.
Whilst this summary information is given in good faith based on the latest information available to JEML and its
It is intended that the initial commercial plant will be constructed starting in 2011 to produce 15,000 bpd oil products (5.7M barrels/year or ~$500M/yr sales including power and sulphur by-products) On proving this initial plant, a larger scale plant will be constructed by adding further trains up to a potential capacity of 30-60,000 bpd, representing sales of up to US$2 B/year @ $75/B oil.
An independent review indicated that the proposed surface retorting technology to be use by JEML (ATP system) is the preferred technology for Jordanian Oil Shale. In this context JEML has negotiated exclusive use of the ATP technology in Jordan.
The project has cash costs of around $23/bbl at full production and a projected break even cost of $38/bbl.
The Company’s Managing Director, Chris Morgan, is a mining engineer and experienced company Director with a 30 year career in the mining and oil and gas sectors. He headed up Shell’s International Petroleum’s E&P oil shale/tar sand division in The Hague in the late 1980’s. Other founding Directors are experienced in AIM flotation, Jordan’s legal and fiscal framework, Mining and Oil Shale technology and finance.
|FEASIBILITY STUDY CONTRIBUTORS|
The FS is being compiled on behalf of JEML by Hatch Limited, a leading Canadian consultancy, using contributions from leading contractors:
|PROJECT DESCRIPTION: SUMMARY|
•Surface mining and retorting of oil shale in Jordan
|PROJECT DESCRIPTION:ENVIRONMENTAL IMPACT ASSESSMENT|
Key Issues Addressed:
Issues Identified as Non-Significant :
|PROJECT STATUS: PROGRESS TO DATE|
|PROJECT STATUS:SUCCESSFUL PILOT PLANT TEST RUNS IN 2006, 2008 AND 2009|
|PROJECT STATUS: SCHEDULED ACTIVITIES 2010|