March 2015

Eesti Energia´s CEO Hando Sutter: Finding Efficiencies

16 Mar 2015
Eesti Energia´s (EE, EAO’s parent company) CEO Hando Sutter has undertaken a review of the company’s international projects, including a visit to Utah and the EAO project in February. When asked for his impressions of the project, he was quick to point out that “there is a strong level of support from the local
community and a real willingness to develop the massive oil shale resources, even from the federal government officials we met”.

Eesti Energia has recently reassessed all ongoing development projects, including EAO, and has decided to make some changes to the EAO business plan. EE wants to see that the maximum energy efficiency is captured by all aspects of the project and is further evaluating adjustments to the Enefit technology concept and business plan. The target is to develop a more robust plan to ensure solid economics, even through a potentially longer term challenging economic environment. Hando also confirmed that while “EE is looking for efficiencies to lower the operating costs, we will continue with the ongoing Environmental Impact Statement and other activities that add value to the asset”.

Hando points out that “we have restructured the company to improve the efficiency of our resources. Some functions currently managed from the US will be consolidated to the EE development team in Estonia. Rikki and her Utah team will have the strong support of our Estonian development team to continue progressing the project”.

This will, of course, affect the development schedule for the Utah Project and it is impossible to say for how long. This is similar to what many other energy companies around the world are doing: reassessing their capital investments, working to rapidly lower operating costs and seeking more efficient technological solutions, which are increasingly important in the current challenging economic environment.

We are of course greatful for the overwhelmingly positive support we have received since coming to Utah in 2011 and look forward to a continued strong partnership.

EIS Status Report

16 Mar 2015
The Bureau of Land Management (BLM) and Enefit have made significant progress on the Utility Corridor Project Environmental Impact Statement (EIS) over the past several months. Following the completion of public scoping last year, the BLM has been busy considering alternatives and conducting the environmental

impact analysis required under the National Environmental Policy Act.

Enefit has been supporting that effort by providing additional technical information on the utilities, such as an engineering analysis of the White River crossing, a characterization of access roads to be used during construction, and design details for the transmission lines. The White River crossing engineering study was completed by a multidisciplinary team lead by Bowen Collins and Associates (BCA), a local Utah civil engineering firm. Enefit recently selected the same BCA team to continue providing civil engineering support for the utility corridor as the EIS progresses. Enefit and the BLM expect the Draft EIS to be published and available for public comment in the third quarter of 2015. Providing industrial-scale utility connections to Enefit’s private property is a priority, meaning the EIS progress represents a significant step in the overall project development.

Enefit Produces Record Amounts of Shale Oil in Estonia

16 Mar 2015
Despite the precipitous drop in oil prices in the second half of 2014, Enefit produced record amounts of shale oil last year, increasing output by 24 percent over 2013. The company produced approximately 1.7 million barrels (265,000 metric tonnes) of shale oil.

As a result, the company paid a dividend of $102 million (approximately 94 million euros) to its owner, the Republic of Estonia.

Going forward, Enefit plans to continue increasing shale oil production in Estonia, while working to reduce environmental impacts through implementing innovative technologies for the cogeneration of oil, oil shale gas and electricity.

Read more about the company’s results in the 2014 annual report.