Government of Jordan
Galaxy Oil Shale has signed a memorandum of understanding with the Government of Jordan represented by the Ministry of Energy and Mineral Resources to carry out an exploratory program offor oil shale in bock (B) in El Lajjun area to be followed by a comprehensive bankable feasibility study for oil shale retorting project and a Production Sharing Agreement with the Governmant (PSA).
HE the Minister
In remarks following the signing ceremony, HE the Minister emphasized the significance of the deal and noted that the Ministry of Energy and Mineral Resources is placing a particular emphasis on indigenous mineral resources because of the role they play in creating economic value and increasing employment opportunities. Production Sharing agreement will be signed after the bankable feasibility study is completed.
El Lajjun area
By-products of the oil shale exploitation include electricity generation, production of thiophene, (a valuable chemical resulting from the conversion of sulfur in oil), as well as limestone, phosphates, ash, and rare earth elements. While some of these materials require separate government licenses, their exploitation is possible under the terms of the Memorandum of Understanding. The exploitation of these materials will add value and provide economic and social benefits that complement the primary objective of oil shale extraction.
Completed Required
Galaxy Oil Shale has completed the required exploration program on the El Lajjun area, studying and analyzing its oil shale deposits. The exploration program included topographic surveying, detailed geological mapping, comprehensive geophysical investigations, hydrology, hydrogeological study, mining study, drilling boreholes, chemical and physical analysis and prefeasibility study.
The exploration program revealed that the El Lajjun area contains exceptionally high-quality oil shale characterized by its high oil content and relatively low overburden that make it feasible for exploitation.
Drilling 8 boreholes
The program included drilling 8 boreholes followed by systematic sampling and assaying of representative oil shale sampling. Oil shale samples were analyzed at the laboratories of the Ministry of Energy and Mineral Resources (MEMR). The exploration and the assaying data were then integrated in several evaluation processes including ore reserve calculation and mining plan.
The exploration program indicated that the average thickness of oil shale in the area is more than 30 meters and the stripping ratio is 1:1. The estimated reserves are about 300 million tons and the average oil content is higher than 10% which defines it as high-quality oil shale suitable for commercial exploitation.
