Millcreek Mining hired to study “reserve” status for Enefit’s oil shale resource
Enefit American Oil (EAO) has hired Millcreek Mining to conduct an assessment of whether the Utah Project’s known oil shale resources and the associated project design and engineering can be validated as “Reserves,” which would increase the Project’s value.
Classifying mineral deposits as “Reserves,” rather than simply “Resources,” means that they have been validated as bankable assets and can be listed on the company’s books.
To the best of EAO’s knowledge, the Project would be the first oil-shale-to-shale-oil project in the world to qualify as a reserve. EAO’s parent company has successfully received a Reserve Statement for its Jordanian oil shale-to-electricity project, and in 2012 its Estonian oil shale deposits were classified as reserves.
The Utah Project is somewhat unique with regard to the reporting standards for reserves as it is contemplated primarily as a mining, material handling, and ore processing operation with the end product being oil and other hydrocarbon-based streams, rather than a more traditional metal or aggregate mining product.
The resulting reserve report is anticipated to be used for raising private equity for the Project and/or to inform valuation as part of a future financial transaction.