Genie Energy Ltd. (NYSE:GNE, GNEPRA) said today that its subsidiary,
Genie Oil Shale Mongolia, LLC (GOSM), has signed a prospecting agreement
with the Petroleum Authority of Mongolia (PAM). The new exploration
block covers twenty-five thousand square kilometers in Central Mongolia
southeast of the Mongolian capital, Ulaanbaatar. The agreement, the
first to be signed under recently passed legislation, also provides a
framework under which the company can request a commercial production
agreement once a specific suitable resource and location are identified.
Michael Jonas, Genie’s Executive Vice President and Director of Global
Exploration and Business Development, said, “We thank the Petroleum
Authority and the Ministry of Mining for their hard work and
professionalism in getting us to this point. We are excited to expand
our oil shale exploration program in Mongolia, and expect that our
investment will benefit the people of Mongolia as well as our Company.”
Yuval Bartov, Chief Geologist of Genie Oil and Gas, said, “Our analysis
of the available geological evidence suggests that this license area may
contain world class deposits of thick and rich oil shale well-suited for
our in-situ extraction technology.”
Together with its previously signed exploration agreement, GOSM now has
exclusive rights to explore for oil shale in approximately 60,000 square
kilometers in Mongolia.
“We are pleased that Mongolia and Genie Energy will be working together
to establish oil shale reserves and explore for and exploit the
resource. The recently passed Petroleum Law created a favorable
environment for investment in conventional and unconventional petroleum
sectors, increasing competition and encouraging sustainable long term
activity,” said D. Gankhuyag, the Mongolian Minister of Mining.
In 2013, Genie and the PAM entered into an exclusive, 5-year oil shale
development agreement to explore and evaluate the commercial potential
of oil shale resources on a separate 34,470 km2 area in
Central Mongolia. GOSM continues to conduct an exploratory drilling
program pursuant to that five year agreement.
About Genie Oil Shale Mongolia, LLC.:
Genie Oil Shale Mongolia, LLC, (GOSM) is an unconventional oil and gas
exploration company operating in Mongolia. GOSM is a subsidiary of Genie
Oil and Gas, the oil and gas exploratory arm of Genie Energy Ltd. (NYSE:
GNE, GNEPRA).
About Genie Energy, Ltd.:
Genie Energy Ltd. (NYSE: GNE, GNEPRA) is comprised of IDT Energy and
Genie Oil and Gas (GOGAS). IDT Energy is a retail energy provider
supplying electricity and natural gas to residential and small business
customers in the Eastern United States. GOGAS is pioneering technologies
to produce clean and affordable transportation fuels from the world's
abundant oil shales and other fuel resources. GOGAS resource development
projects include a conventional oil and gas exploration program in
Israel and in-situ oil shale projects in Colorado, Israel and Mongolia.
For more information, visit www.genie.com.
Forward Looking Statements:
All statements above that are not purely about historical facts,
including, but not limited to, those in which we use the words
“believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target”
and similar expressions, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. While
these forward-looking statements represent our current judgment of what
may happen in the future, actual results may differ materially from the
results expressed or implied by these statements due to numerous
important factors. Our filings with the SEC provide detailed
information on such statements and risks, and should be consulted along
with this release. To the extent permitted under applicable law, Genie
Energy, Ltd., assumes no obligation to update any forward-looking
statements.
Copyright Business Wire 2014