Tarfaya Oil Shale ProjectNOTE: Besides not being operational by the end of 2010,this is an in-situ process with the Oil Shale zone 195 metres below ground level.Extraction of the Kerogen will require heating this 10 metre zone between the 2 wells to very high temperatures by burning Natural Gas.The hot gas is injected down one well and Kerogen and vapors extracted from the other.Connectivity between the wells is necessary for this flow to occur,which doesn't appear to be present even after fracing.This is a very costly process using enormous amounts of energy to recover any product and is in no way similar to GNZ's ex-situ process of surface mining the Oil Shale from a shallow depth.
Operational Update
June 24, 2011
Morocco
Tarfaya Oil Shale Project
Following completion of the first technical study at the end of 2008, optimisation and field analysis took place during 2009, with SLE's oil shale plant due to be operational by the end of 2010. Through careful ongoing procurement, the construction budget for the project will be less than half the estimated $4.6M.
Research indicates over 50 billion barrels recoverable (based on 62 litres per tonne) from this source and San Leon will implement an in-situ process for heat transfer to the shale pad at depth, and surface recovery of liberated kerogens and hydrocarbons.
The Tarfaya Oil Shale pilot project is well advanced.
The base camp has been constructed and all operational personnel are on site with all communications systems in place.2 of 4
The pilot plant site construction and the assembly of the process equipment has been completed.
Two wells have been drilled at a distance of 10 meters apart confirming the presence of 30 metres of prospective oil shale at a depth of 195 meters. This is slightly thicker than the original prognosis. The initial model provided by ONHYM (Morocco National Office of Hydrocarbons and Mines) has also been confirmed by the well logs.
A pre frac injection test with water was applied to collect data concerning the natural connectivity between the two wells and was followed by a mini hydro frac. This was unable to establish connectivity between the wells.
Initial analysis of these tests has suggested the presence of natural fractures in the shale. San Leon is encouraged by the possibility of these natural fractures which could enhance the propagation of heated gas throughout the prospective intervals.
The Company is re-evaluating the technical programme to incorporate the new data gained from these tests into its model for commercial extraction of oil from the Tarfaya Shale.
The Company plans to drill a third test well using the same rig in August 2011. Core data will be collected, from this well, in order to evaluate the local geologic parameters of the prospective shale interval as well as the presence and orientation of any natural fractures at the pilot location. Following the drilling of the third well, San Leon will again perform a small frac on the shale to establish connectivity between the wells. Based upon these results injection tests will be designed to take advantage of the fractures.
Upon successful flow testing with water, followed by nitrogen, propane will subsequently be brought to the pilot plant to test the process of heating the shale with natural gas.
San Leon’s new seismic acquisition subsidiary, NovaSeis, is up and running in Morocco. NovaSeis plans to start the acquisition of 1,200 km of 2D seismic in its Tarfaya and Zag Licences by July 1, 2011.
Full re-interpretation of the seismic data on the offshore Foum Draa and Sidi Moussa Licences is near completion. Once this is successful, the Company is likely to seek farm-in partners for drilling.