Questerre Energy Corporation reported recently on an essential test of mechanical rock properties for its oil shale in Jordan.
Michael Binnion, president and chief executive officer, Questerre, commented: “Finding a way to commercialise this significant oil shale project in a US$50 to US$70 per barrel environment is our main focus here. These tests establish that the mechanical rock properties of our shale are conducive to meeting this goal.”
The company’s significant discovery on its oil shale acreage in Jordan was recently assessed by an independent qualified resource evaluator, Millcreek Mining Group, in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (COGE Handbook).
This resource assessment estimated the best estimate of Discovered Petroleum Initially in Place (DPIIP) of 12.24 billion barrels. Using a 2:1 volumetric ratio of overburden to ore, the best estimate of DPIIP for the lower rich horizon with an average grade of 22.66 gallons per ton is 7.78 billion barrels.
The resource assessment was prepared in accordance with NI 51-101 and the COGE Handbook with an effective date of 1 October 2016.
“Mineability and crushability, while maintaining compressive strength, are critical factors in the processing of oil shale. The mechanical rock properties testing has shown that our oil shale meets these criteria for all the technologies we are evaluating, including Red Leaf’s EcoShale process,” added Binnion.
The testing was conducted in conjunction with Red Leaf Resources. Questerre continues to work collaboratively with Red Leaf. In a recent update to its shareholders, Red Leaf noted that it has reached an agreement with a subsidiary of Total to exit their joint venture agreement.
Red Leaf currently has over US$100 million in available cash and no debt. It intends to continue to pursue its business plan of commercialising the EcoShale process. Questerre currently holds approximately six percent of the equity capital of Red Leaf and has certain rights to use the EcoShale process to recover oil from shale.
The main objectives of the retort compression testing (RCT) were to identify whether the shale could be directly heated without any deterioration in the quality and the specific mechanical properties of the spent shale under stress. The testing was successful on both counts.
Based on the results of the RCT, the next round of testing will identify the oil yield, including products and quality, from the Jordan oil shale using direct heating under various heating cycles. Testing is underway with results expected early this summer.
Questerre is leveraging its expertise gained through early exposure to shale and other non-conventional reservoirs. It is pursuing oil shale projects with the aim of commercially developing these significant resources.
