Xtract Energy entered into a heads of terms with Global Oil Shale Group Ltd. concerning oil shale tenements at Julia Creek in Queensland, Australia.
The tenements cover 709 sq km and contain 2.18 billion barrels of shale oil at an average grade of 61 liters per ton at zero moisture.
The transaction means Global Oil Shale has potential to earn a controlling interest in the Julia Creek tenements by funding and undertaking a three-year work program covering exploration, development and engineering activities relating to the exploitation of the Julia Creek oil shale tenements for oil production.
The program would include mining plan and resource testing, pre-feasibility study for choice of processing approach for Julia Creek oil shale, and bankable feasibility plan and pilot testing of Kerogen based oil production facility.
Both parties anticipate that preparation of the detailed work program and negotiations leading to binding agreements will be completed within three months.
