Genie Oil Shale Mongolia (GOSM), a subsidiary of Genie Energy, has signed a prospecting agreement with the Petroleum Authority of Mongolia (PAM). The new exploration block covers 25,000 sq. km in Central Mongolia, southeast of Ulaanbaatar. The agreement, the first to be signed under the 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.
Yuval Bartov, Chief Geologist of Genie Oil and Gas, said, “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.” Together with its previously signed exploration agreement, GOSM now has exclusive rights to explore for oil shale in approximately 60,000 sq. km in Mongolia. In 2013, Genie and the PAM entered into an exclusive, 5-year oil shale development agreement to explore and evaluate the commercial potential of oil shale resources on a separate 34,470 km2 area in Central Mongolia. GOSM continues to conduct an exploratory drilling program pursuant to that five year agreement.