Enefit American Oil. Rikki Hrenko Golden, CO October, 2011

Transcription

1 Enefit American Oil Rikki Hrenko Golden, CO October,

2 Contents 1. Introduction to Enefit American Oil 2. Overview of Development Plan and Progress 3. Update on Enefit s Oil Expansion in Estonia 2

3 1Introduction to Enefit American Oil 3

4 1. Enefit American Oil Enefit purchased 100% of OSEC (Oil Shale Exploration Company) on March 31, 2011 Enefit acquired all property, leases, and other assets, including: BLM RD&D lease & White River Mine property Newly constructed on-site weather monitoring station Company was renamed from OSEC to EAO (Enefit American Oil) EAO is 100% owned by Enefit (known as Eesti Energia in Estonia) Retorting technology will be the new generation Enefit Technology, provided by EOT (Enefit Outotec Technology)

5 1. Enefit Overview Enefit Vertically integrated utility (oil shale mining, shale oil production, generation, distribution, supply) S&P credit rating of BBB+/stable outlook, Moody s credit rating A3/stable outlook (as at 26 July 2010) State owned, Bonds listed on the London Stock Exchange Oil Shale Mining Oil Shale Power Generation Shale Oil Production International Development Over 100 years operations, more than 1 bn tonnes of oil shale mined to date Reserves of more than 1 bn tons Annual production ca M tons 4 operating mines: 2 surface, 2 underground mining employees Experienced in remediation hectares restored Provides 91% of Estonia s electricity, more than 550 TWh produced to date 2380 MW of oil shale fired capacity world largest oil shale power plants Allows significant electricity exports to Baltic region and Finland Ensures security of supply Approx 1200 employees 50 years of surface retorting experience More than 200 M bbl oil produced to date 30 years of commercial operation of the Enefit140 units 2010 annual production over 1M bbl New generation Enefit280 plant under construction in Estonia, commissioning in 2012 Enefit international development projects are based on Enefit280 shale oil production technology USA: 50,000 bbl/d oil, resource is owned/leased Jordan: 38,000 bbl/d shale oil production, MW power production, resource is via concession Enefit280 technology is available for licensing Narva Open Pit Mine Mines total annual production 17 M tons Eesti Power Plant 1615 MW Narva Oil Plant 1,3 M bbl Jordan Development Project 5

6 1. Enefit American Oil Property Total Resource Under EAO Control: 2.6 B bbl White River BLM Lease: 17.7 M bbl White River BLM Lease Extension: M bbl Skyline Private: 1.5 B bbl SITLA State Leases: M bbl Orion (Private; Options): 132 M bbl In place resource estimates based on 55 ft mining horizon beginning below the Mahogany Marker.

7 1. Enefit American Oil: Project Overview Overview of Key Project Activities Mining Processing Marketing Environment Combination of surface mining and underground mining Mining plan to involve not only private but also federal and state lands to be developed Annual mine production to support 50,000 bbl/d oil processing feed: 30 million tonnes/yr Our goal is to convert RD&D lease to commercial lease and incorporate with Skyline mining plan First oil of 25,000 bbl/d planned for 2020, full capacity of 50,000 bbl/d reached in 2024, subject to confirmation Enefit280 to be adjusted to Utah oil shale characteristics, upscale (above 280) to be determined Raw shale oil upgraded to either i) Synthetic Crude Oil (SCO), ii) end use diesel (tbd) First target market is SLC Transport to SLC market via pipeline Additional rail links to the east and west under review 1.5 years of baseline data collection to start 2011 Planning and preparation for EIS started Concept will be optimized for water minimization and recycling Ash backfilling testing and concept to be developed

8 2Overview of Development Plan and Progress 8

9 2. Enefit American Oil : Project Development Timeline Permitting / Environmental Geology study and resource confirmation Water supply study Mining Study Retort Testing Oil Upgrading Testing Engineering Industry Complex Stage 1 25,000 bpd: Construction Industry Complex Stage 2 25,000 bpd: Construction Industry Complex Stage 1 25,000 bpd: Operation Full Industry Complex 50,000 bpd: Operation 9

10 2. EAO Development Schedule Preliminary schedule subject to change Phase 1 May 2011 August 2012 Phase 2 September 2012 December 2013 Phase 3 January 2014 May 2015 Phase 4 June 2015 December 2016 Geology: phase 1 drilling and assay Mining: concept study Enefit: bench testing; conceptual engineering; demo unit construction Oil: crude oil assay; market study Environment: 1.5 year baseline monitoring; water supply plan Geology: phase 2 drilling and assay; bulk sample collection for demo unit Mining: concept update; pre-feed Enefit: pilot testing; pre- FEED Oil: tech provider; conceptual study; HTU pilot tests Environment: 1.5 yr. Baseline monitoring; start NEPA/EIS Geology: JORC expert report Mining: FEED study; Enefit: FEED study Oil: PDP; pre-feed study Environment: NEPA/EIS; start PSD permitting; start NPDS permitting; start Utah drinking water permit Infrastructure: Design/ Pre-FEED Mining: all permits obtained for mine opening by end of 2015 Enefit: contracting Oil: FEED; contracting Environment: Complete PSD Permit; Start Title V Permit; Complete NPDS Permit; Complete Utah Drinking Water Permit Infrastructure: FEED; contracting

11 2. Exploration Program Objective 1: 12t bulk sample Objective 2: Resource assessment 6 inch coring 20 holes, 5 locations All on private Skyline property 3 inch coring 7 holes to determine uniformity 2 on Skyline, 1 on RD&D, 4 on SITLA lands

12 2. Enefit Testing Key Activities E-assay Study: kg sample of Utah shale in EOT R&D center Testing at 4 different temperatures in addition to the Fischer Assay with oil shale + ash Pictures Bench Scale Testing Unit (20kg/h) Enefit Bench Scale Testing and Conceptual Engineering: tons of Utah shale to be shipped to EOT R&D center Crushing tests Ash production in 700mm CFB testing unit Enefit Bench scale testing Oil sample production for basic assay tests Demo Unit Testing: 2013 ~100 ton sample to be shipped to EOT R&D center Will produce sample for pilot upgrading studies Provides key data for the pre-feed and FEED stages Demonstration Unit (350 kg/h) 12

13 2. Environmental Baseline Data Collection Current Status: Amendments on QAPP discussed with EPA (US Environmental Protection Agency) Operation of the existing station required for 1.5 years; planned start within 2011 Monitoring Station Description 60 m tower with monitors at 10, 30 and 60 m Meteorological Data Collection - Wind Speed and Direction - Vertical Wind Speed - Ambient Temperature - Vertical Temperature Difference (Delta-T) - Radiation - Precipitation - Relative Humidity - Barometric Pressure Ambient Air Quality Data Collection - PM10 - PM2.5 - Ozone - NO-NOx - SO2 - CO

14 3Enefit s Oil Expansion in Estonia 14

15 3. Enefit Development in Estonia The first application of the new generation Enefit oil plant is currently under construction in Estonia Design basis for Narva Enefit280 Shale oil production capacity (mbbl/year) Our first new Enefit 280 plant will be built in Narva Investment, construction and operations by Enefit Production figures: oil shale consumption: 2.3 M t/y oil production: 1.9 M bbl/y retort gas production: 75 M m 3 /y power output from excess heat: 35 MWe Designed lifetime: 30 + years Start-up: 2012 Construction of two additional Enefit280 units and an upgrader plant will be started in 2013 for commissioning in

16 3. Enefit280 Under Construction April

17 3. Enefit280 Under Construction July 7, 2011

18 3. Enefit280 Under Construction September 9, 2011

19 3. Enefit280 Under Construction October 11, 2011

20 Contact: Rikki Hrenko CEO, Enefit American Oil Phone: (+1)