FORT LAUDERDALE, Fla., Nov. 13, 2012 /PRNewswire/ -- Xtra Energy Corp. ("Xtra Energy" or the "Company") (Pinksheets: "XTPT"),
FORT LAUDERDALE, Fla., Nov. 13, 2012 /PRNewswire/ -- Xtra Energy Corp. ("Xtra Energy" or the "Company") (Pinksheets: "XTPT"),released today information on the beneficial intrinsic value received by Xtra Energy in relation to the acquisition of Oilshale International Corp. ("OSIC") involving the previous capital expenditures incurred and engineering studies conducted on Xtra Energy's Pasquia Hills oil shale permits.
OSIC which is a wholly owned subsidiary of Xtra Energy and the other joint venture partners in the Pasquia Hills oil shale permit SHP00008 have previously contracted Hatch Ltd., to undertake a prefeasibility study ("PFS") on the Pasquia Hills oil shale deposit. Hatch Ltd. is a world leader in Consulting, Engineering, Procurement and Construction Management and has extensive expertise in the design and engineering of oil shale mining and processing facilities and has completed several oil shale mining, plant construction and feasibility studies in the United States, Jordan, Australia and China.
OSIC and the other Pasquia Hills oil shale joint venture partners are in the process of completing a PFS using Hatch Ltd. for the development of a Shale to Liquids Plant at its Pasquia Hills oil shale property. The PFS will assess the applicable mining, extraction and refining methods and provide details on equipment, capital and operating costs as part of a detailed mining and production scope analysis to confirm commerciality and / or the conditions required for commerciality of Xtra Energy's identified oil shale resources and deposit.
The PFS is one of the studies necessary to explore the manner in which the Pasquia Hills oil shale property of which $350,000 has been expended to date on the PFS. The PFS will incorporate the results of the previously completed 13 core hole drilling exploration and development programs. This program resulted in an internal gross contingent resources estimate of 1.878 billion barrels of oil distillate over an identified oil shale deposit encompassing 38,223 acres. The PFS will assess the applicable mining, extraction and refining methods and provide details on equipment, capital and operating costs as part of a detailed mining and production scope analysis to confirm commerciality and / or the conditions required for commerciality of these identified oil shale resources.
Current milestone progress for the PFS indicates that the project progress stands at 30% although many of the process deliverables have progressed up to 50% for the PFS study. Project progress milestones to date include:
- The retort technology selection has been completed by Hatch Ltd. Hatch and OSIC have entered into discussions and negotiations have been conducted to arrange a retort technology license for the selected technology for the project's oil shale retort and Shale-to- Liquids processing plant;
- The site area for the Shale to Liquids Plant location has been chosen and is located adjacent to a rail line and transportation infrastructure. The town of Arborfield which is within the OSIC's permit area is located nearby to the planned plant site area and the local municipal authorities have been contacted regarding resources for the project including gas, electricity and water and preliminary requirements and arrangements are being finalized;
- Facility planning and phasing including a preliminary plot plan has been completed based upon initial production of a 3000 to 5000 bpd plant capacity for phase 1 of the project;
- The preliminary Process Design Basis has been prepared by Hatch and reviewed by the oil shale joint venture partners. The critical data to finalize the Process Design Basis will include the laboratory results from six oil shale test cores planned to be laboratory tested by the chosen retort technology engineering company;
- An estimate basis for the capital costs has been completed;
OSIC has finalized a budget and made arrangements to complete bench scale laboratory rework and testing of six of its original oil shale cores which will be incorporated into the Hatch Ltd. prefeasibility study and we expect to complete the bench scale laboratory tests and the PFS by May 2013.
Xtra Energy plans to contract Hatch Ltd. to complete the rest of the prefeasibility and oversee the bench scale laboratory oil shale core testing which will include laboratory testing of the six original oil shale cores and the results of the additional three core holes that are planned to be drilled in December 2012 as previously disclosed on October 25, 2012 over the oil shale deposit sweet spot.
Xtra Energy is benefiting from the almost $2 million dollars that has been expended to date by OSIC and the other Pasquia Hills oil shale joint venture partners in acquiring the Pasquia Hills oil shale leases, drilling a total of 13 core holes and facilitating all the lab analysis and reports on the results and on the PFS which expenditures have established that a significant oil resource of 1.878 billion recoverable barrels of oil is present and the ore could be retorted to yield distillate oil at roughly 45 to 50 liters per ton.
Xtra Energy's Pasquia Hills oil shale property consists of a total of 86,533 acres of oil shale exploration and development rights located in the Pasquia Hills region of northeastern Saskatchewan, Canada. Xtra Energy holds a 55% percent working interest in the oil shale permit SHP0008 though it's recently purchased wholly-owned Canadian subsidiary Oilshale International Corp.
About Xtra Energy Corp.
Xtra Energy Corp. is a publicly traded energy company focused on the acquisition and development of unconventional oil shale resources in North America. Xtra Energy's common shares trade on the Pinksheets under the symbol "XTPT."
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Ms Linda MacDonald
Xtra Energy Corp.
Fort Lauderdale, Florida
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended; such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operations to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors, which could materially affect the Company and its operations, are included on certain forms the Company files with the Securities and Exchange Commission.
SOURCE Xtra Energy Corp.