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Genie claims huge swathe of Mongolia in hunt for shale

16th September 2014

Genie Energy has said that its subsidiary, Genie Oil Shale Mongolia, LLC (GOSM), has signed a prospecting agreement with the Petroleum Authority of Mongolia (PAM) that adds 25,000 square kilometres to its exploration assets in the country

Genie claims huge swathe of Mongolia in hunt for shale
The agreement, the first to be signed under recently passed legislation, also provides a framework under which the company can request a commercial production agreement once a specific suitable resource and location are identified

The new exploration block covers 25,000 square kilometres in Central Mongolia southeast of the Mongolian capital, Ulaanbaatar.

"We are pleased that Mongolia and Genie Energy will be working together to establish oil shale reserves and explore for and exploit the resource," said D. Gankhuyag, the Mongolian minister of mining. “The recently passed petroleum law created a favourable environment for investment in conventional and unconventional petroleum sectors, increasing competition and encouraging sustainable long term activity.”

The agreement, the first to be signed under recently passed legislation, also provides a framework under which the company can request a commercial production agreement once a specific suitable resource and location are identified.

"We thank the petroleum authority and the ministry of mining for their hard work and professionalism in getting us to this point," said Michael Jonas, Genie's executive vice president and director of global exploration and business development. “We are excited to expand our oil shale exploration program in Mongolia, and expect that our investment will benefit the people of Mongolia as well as our company.”

Together with its previously signed exploration agreement, GOSM now has exclusive rights to explore for oil shale in approximately 60,000 square kilometres in Mongolia.

Yuval Bartov, chief geologist of Genie Oil and Gas, added: "Our analysis of the available geological evidence suggests that this licence area may contain world class deposits of thick and rich oil shale well-suited for our in-situ extraction technology."

In 2013, Genie and the PAM entered into an exclusive, five-year oil shale development agreement to explore and evaluate the commercial potential of oil shale resources on a separate 34,470 square kilometre area in Central Mongolia. GOSM continues to conduct an exploratory drilling program pursuant to that five year agreement.

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