Tomco Energy (NCS)- the next Cadence?

5.4 Current methodologies for the extraction of shale oil

Extracting oil from oil shale is more complex than conventional oil recovery as
the hydrocarbons in oil shale are present in the form of solid materials and
therefore cannot be extracted using conventional oil drilling methods. The rock
must therefore be heated to a high temperature and the resultant liquid
separated, a

process known as retorting. Existing retorting technologies fall into one of two
groups: mining (followed by surface retorting) and in situ retorting.

Whilst neither of these methodologies are currently in wide-scale commercial
use, the Directors note that significant developments are being made in the
field of the development of in situ oil shale extraction technology by major oil
companies and smaller developers of mining technology. Shell, in particular, has
made significant technological advancements in oil shale extraction at its
Mahogany research project, located in the Piceance Basin, east of the Green
River formation near Meeker, Colorado, some 100 miles (162 kilometres) east of
the TomCo Leases. Shell has announced that its in situ extraction technology
could be economic at oil prices exceeding $30 per barrel.