EGL Wins Colorado Oil Shale Lease

E.G.L. Resources, Inc. (EGL) and the Bureau of Land Management have entered into a 160-acre Oil Shale Research, Development and Demonstration (R,D&D) lease in Rio Blanco County, Colo.

The 10-year lease affords EGL the opportunity to demonstrate its oil shale technology in the field. Upon this demonstration, the economic and environmental viability of EGL's technology will enable them to expand their lease to 5,120 acres for commercial development and to produce shale oil in commercial quantities. EGL is among the remaining four of the 30 firms that originally proposed their technology and development plans to BLM.

Oil shale is a mineral that contains a solid hydrocarbon that requires heating to high temperatures to produce oil and gas. It is similar to the oil sands in Alberta, Canada where a partnership between government and business has resulted in a 1 million-b/d industry. The resources of oil shale in Colorado are immense and rival the oil reserves in the Middle East. An acre of ground on EGL's lease contains about 2 million barrels of shale oil resource, of which, about 60 percent is estimated to be recoverable with the EGL Oil Shale Process.

Past efforts to commercialize oil shale in Colorado were based upon mining and surface processing methods. They failed for a number of technical, economic and environmental reasons.

EGL's approach is to recover the shale oil underground, without mining, by using modern oil and gas drilling as well as completion and recovery technologies not available to earlier developers.

In the last several months, BLM conducted an environmental assessment for the project. During this period, public meetings were held in the Colorado communities of Rifle, Meeker, Rangely and Grand Junction. Site characterization activities are currently projected to begin in the field in 2007/2008. In the interim, research and planning will be continued to optimize conditions for the field test. EGL invites input from all interested parties and assures that it will be a good steward of the land.

EGL is a privately owned, independent oil company with operations in the southwestern US. E.G.L. Oil Shale, LLC is the wholly owned subsidiary overseeing oil shale operations in Western Colorado. Its goal is to develop technology that can lead to producing shale oil on a commercially viable and environmentally sustainable basis.