Questerre’s oil shale assets include its project in the Kingdom of Jordan (“Jordan”) and its investment in Red Leaf Resources Inc. (“Red Leaf”). Red Leaf is a private Utah based company whose principal assets include the EcoShale process to produce oil and shale and oil shale leases in the state of Utah. Questerre currently owns approximately 30% of the common share capital of Red Leaf.
The Company acquired the Jordanian project in 2015 through a Memorandum of Understanding (“MOU”) for the appraisal and development of oil shale with the Ministry of Energy and Mineral Resources in Jordan (the “MEMR”). The MOU covered an area of over 380 km2 in the Isfir-Jafr area, approximately 200 km south of the capital Amman. The Company holds a 100% working interest in the MOU and the resources. In 2017, the Company high graded its acreage and reduced the area under the MOU to 265 km2.
In 2019, Questerre began integrating the goal of minimizing the environmental impacts into the technical and economic feasibility assessment for its oil shale project in Jordan.
The primary objective of this work is to optimize the processes and improve the economic returns. The Company is evaluating several passive drying processes as well as carbon capture and small-scale modular co-generation facilities to achieve these objectives. It is leveraging the engineering work by Hatch Ltd., a global engineering firm, on the EcoShale process to identify additional optimization opportunities. During the year, Questerre was advised by the MEMR it intends to move forward from a MOU to a Concession Agreement for the Company’s acreage. This follows the submission and acceptance of the Company’s reports on the exploration work conducted to date. Negotiations on the fiscal and other commercial terms commenced in the fourth quarter. Questerre continues to hold the exclusive exploration rights to the acreage during these negotiations.