Genie Energy Ltd., Newark, NJ, said its Mongolian subsidiary signed an exclusive agreement to explore and evaluate the commercial potential of oil shale resources on 34,470 sq km in central Mongolia.
Petroleum Authority of Mongolia granted Genie Oil Shale Mongolia LLC a 5-year contract to explore, identify, and characterize the resource and conduct a pilot test using in situ technology on appropriate oil shale deposits.
Genie may seek to proceed to commercial development via a production sharing agreement in accordance with Mongolian law. To date, Genie Energy is the only recipient of an exclusive oil shale survey contract in Mongolia.
Genie Energy said it began evaluating Mongolia’s oil shale deposits after signing a joint survey agreement in 2012 and that it has located a world class resource within which it will now identify the most advantageous areas for development.
Genie Energy is comprised of IDT Energy and Genie Oil and Gas. IDT Energy supplies electricity and natural gas to residential and small business customers in the northeastern US. The oil and gas unit has oil shale and oil and gas initiatives in Colorado, Israel, and Mongolia.