San Leon Energy signs MoU with Chevron Lummus Global


San Leon Energy signs MoU with Chevron Lummus Global

LONDON -- San Leon Energy Plc (SLE) has signed a Memorandum of Understanding (MoU) with Chevron Lummus Global LLC (CLG), to exclusively cooperate in respect of the oil shale upgrading technology required to produce high quality synthetic crude oil from the raw shale oil to be produced in San Leon's Timahdit oil shale License Area, Morocco.

The MoU will result in a detailed evaluation by CLG focused on implementing proven proprietary CLG technology on the raw shale oil produced at the proposed Timahdit Plant to be designed and delivered in cooperation with Enefit Outotec Technology (EOT), a joint venture of the world’s leading oil shale energy company Enefit and mineral and metals processing technology group Outotec. The proposed Timahdit Plant, as described in the Initial EOT Evaluation Study, will be built using the latest Enefit280 process and EOT’s experience.

Chevron Lummus Global will propose a design for an Oil Shale Upgrading unit to produce high quality synthetic crude oil which will then be refined locally. CLG has already licensed its hydrocracking technology to the Samir Refinery in Mohammedia, Morocco.

The Initial EOT study proposes that the Timahdit Plant will have three Enefit 280 units. The plant will be designed with the ability to increase capacity to exploit the estimated resource of 600 million bbl of shale oil within SLE’s Timahdit License area as suggested by historical data and confirmed by the EOT study.

SLE is currently conducting a core drilling operation to extract samples from the Timahdit oil shale deposit for testing at the Enefit Bench Scale plant located at EOT's R&D centre in Frankfurt, Germany. The results of these tests are expected to be available in Q2 2014.

An updated feasibility study for the Timahdit Oil Shale project is currently planned to be completed by year-end. This will facilitate the completion of project finance to fund the construction of the proposed plant envisaged to begin after 2015. Initial reactions from financial institutions have been very encouraging based on the strong interest in investing in Morocco’s energy future.

In August 2013, San Leon was offered exclusive rights to the 36 sq km Timahdit Oil Shale License for two years to evaluate the commercial viability of a surface retorting project on the prolific Timahdit oil shale deposit. Timahdit's shale oil yield in the awarded area is considered to be the highest in Morocco with an average of 100 l/t in the rich layers and has significantly less moisture content than many other international oil shale deposits. The project will also include power generation facilities.

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