Says It Will Pursue an ‘Open Collaboration‘ Model to Solve Shale Oil Challenges
IDT Corporation (IDT) announced today the formation of a new division, the American Shale Oil Corporation (AMSO), and outlined a vision for the company‘s future. AMSO will manage IDT‘s oil shale ventures including the company‘s initial foray – its 75% stake in E.G.L. Oil Shale LLC (E.G.L.), which will be renamed AMSO LLC.
E.G.L. is one of three companies awarded leases by the Bureau of Land Management to develop and demonstrate in-situ shale oil extraction technologies on 160 acres in Western Colorado. If E.G.L. demonstrates an economically viable and environmentally responsible shale oil extraction process, it will be awarded the right to operate commercially on an additional 4,960 acre Preference Right Lease Tract. Shale oil reserves on portions of that tract are estimated to be as high as two million barrels per acre.
The company also announced the names of four key AMSO LLC executives:
Howard Jonas, IDT‘s Chairman, will serve as the company‘s Chairman and Chief Executive Officer.
Wesley Perry will serve as the company‘s Vice Chairman. An engineer by training, Mr. Perry is also President of EGL Resources, Inc., an independent oil and gas producer headquartered in his hometown of Midland, Texas, where he was recently elected Mayor.
Alan K. Burnham, Ph.D., one of the nation‘s leading scientific authorities on oil shale extraction technology, will serve as the company‘s Chief Technology Officer (CTO). Dr. Burnham‘s career includes three decades of senior research and technical project management positions at the Lawrence Livermore National Laboratory. From 1993 to 1995, he led the Lab‘s Fossil Energy and Energy Technologies programs, which studied fossil energy projects including oil shale processing.
Roger L. Day will serve as the company‘s Vice President for Operations. He previously managed field operations for E.G.L. Oil Shale. Mr. Day has worked for over thirty years in mine engineering. In Western Colorado, he pioneered proprietary drilling techniques to recover Nahcolite using high temperature solution mining and directional drilling—practices that are expected to be translatable to the shale oil recovery process.
“In 2007, Americans shelled out a record $331 billion on oil imports,“ said Howard Jonas. “But even that astounding figure represents only a fraction of the true cost. Oil imports are undermining our strategic interests around the globe by subsidizing hostile regimes. The security costs involved in defending global oil adds tens of billions more to the tab. America is staggering under the burden of our foreign oil addiction. This might be excusable if there were no better alternative available to us…but there is. America has approximately two trillion barrels of shale oil reserves. It is truly one of America‘s greatest national resource treasures.
“Nearly fifty years ago, a national commitment to land a man on the moon galvanized a cooperative effort involving private enterprise, the highest levels of government, and a space agency comprised of highly dedicated professionals. Working together, they successfully developed new technologies and overcame every obstacle. Today, America needs a comparable, federally-led, public-private partnership to win our energy independence. Researching and developing environmentally responsible ways to tap our nation‘s shale oil and other unconventional fuel reserves must be a key part of that effort. The challenges are so difficult, and the stakes are so high, that such a massive effort is both necessary and justified.
“AMSO has accepted this challenge and will do its part. We intend to pursue, and are urging the other participants in the industry to join us in, an ‘open collaboration‘ approach to solving the challenges that have stymied shale oil extraction for decades. Processes and results should be transparent and public. We intend to share our challenges, findings, and achievements with the American people and encourage others to do the same. We will solicit ideas and welcome participation from research universities, national and private labs, private industry, and from anyone who is interested in advancing the prospects for oil shale,“ Jonas continued. “This needs to be a truly national effort. The collective genius of America will be able to conquer this challenge.“
“We are delighted that Wes Perry, Alan Burnham and Roger Day will be working together with us on this project,“ said Jim Courter, CEO of IDT. “Their knowledge and experience will help ensure that the technologies we develop are translated into results in the field. Our investment in oil shale reflects our conviction that America‘s dependence on foreign oil must end.“
About IDT Corporation:
IDT Corporation is an innovative and opportunity seeking multinational holding company with operations that span various industries. Through its Telecom subsidiary, IDT provides telecommunications services worldwide to the retail and wholesale markets. IDT subsidiary American Shale Oil Corporation (AMSO) manages IDT‘s oil shale ventures. IDT Energy operates an Energy Services Company (ESCO) in New York State. IDT’s Capital division incubates newer businesses, and the Company’s Spectrum subsidiary holds its spectrum license assets. IDT Telecom provides retail and wholesale telecommunications services and products, including pre-paid and rechargeable calling cards, consumer local, long distance, and wireless phone services, and wholesale carrier services. Under the Net2Phone brand name, the Company also provides a range of voice over Internet protocol (VoIP) communications services. IDT Capital’s operations include receivables portfolio management and collection, ethnic food distribution, brochure distribution, Internet Mobile Group, Net2Phone Ventures and other initiatives. IDT Corporation’s Class B Common Stock and Common Stock trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C, respectively.
In this press release, all statements that are not purely about historical facts, including, but not limited to, those with the words “believe,““anticipate,““expect,““plan,““intend,““estimate,““target“ and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to IDT as of the date thereof, and IDT assumes no obligation to update any forward-looking statements or risk factors.