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Morocco: San Leon Energy provides update on Tarfaya oil shale project onshore Morocco

04 Feb 2013

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On 29 August 2012 San Leon Energy commissioned Enefit Outotec Technology ('EOT') to conduct an initial study of the Tarfaya Oil Shale, Morocco, with a view to pursuing a possible surface retorting project utilizing the Enefit 280 process.

EOT conducted the study on the basis of borehole data from Shell's operations in the 1980's. In addition, EOT picked 34 samples, at 0.5 m intervals, from the oil shale layers outcropping in the Trial Pit that was first excavated by Shell. The samples were taken to Estonia for analysis and then to Germany where further Fisher Assays tests were carried out. The resulting data was injected into an adapted model and a good correlation of the field samples taken by San Leon and the extensive borehole data collected by Shell was established.

The yield results from the data samples from the R1 and R3 reservoir zones suggest that an oil yield of 72 litres of oil per ton of extracted material is achievable. Preliminary modeling of the project confirmed that a commercial operation is possible.

Further work is now focused on the optimal configuration of a plant based around the Enefit 280 process and the potential product mix in the context of Moroccan market conditions, with a view to the Company seeking partners into a 5,000 - 10,000 bopd production capacity plant.

Executive Chairman, Oisin Fanning commented:

'We are very encouraged by the results of the preliminary process evaluation conducted by EOT. We are now confident that there are no technical obstacles that would prevent adaption of the Enefit process for processing Tarfaya oil shale. Following our announcement regarding Foum Draa last week, we are delighted to announce further progress in the development of our Moroccan assets. Morocco has one of the largest oil shale reserves in the world and projects such as Tarfaya will help the Kingdom meet its future energy needs.'

Photo - see caption

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Source: San Leon Energy

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