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R&D Effort to Unlock America’s Vast
Untapped Unconventional Fuel Reserves
IDT Corporation (IDT) and EGL Oil Shale, LLC (EGL) announced today that
IDT has signed a binding Letter of Intent to acquire a 75% interest in
EGL. EGL is one of three holders of 10-year leases granted by the US
Bureau of Land Management (BLM) to research, test and demonstrate the
potential for commercial oil shale production in Western Colorado. This
area is estimated to contain the world‘s
richest oil shale reserve, with 1.2 trillion barrels of potentially
recoverable oil. The 10-year lease affords EGL the opportunity to
demonstrate its innovative oil shale recovery technology in the field.
The other holders of similar leases in Colorado are Royal Dutch Shell
and Chevron. Proceeds from IDT‘s investment
will be used to fund EGL‘s Research,
Development and Demonstration plan. Once EGL demonstrates the economic
and environmental viability of its technology, it will have the
opportunity to expand its lease to 5,120 acres for commercial
development.
IDT‘s investment in EGL is part of a broader
strategic initiative to significantly expand its operations in the
energy sector. Claude Pupkin, SVP of Corporate Development, stated: “We
believe that EGL represents a great strategic fit as it combines oil &
gas expertise, an entrepreneurial spirit and an innovative approach to
the oil shale opportunity.“
Oil shale is a mineral that contains a solid hydrocarbon that requires
heating to high temperatures to produce oil and gas. Past efforts to
commercialize oil shale in Colorado were based upon mining and surface
processing methods. EGL‘s approach is to
recover the shale oil underground without mining by using modern oil and
gas drilling, completion and recovery technologies not available to
earlier developers. Following an environmental assessment, EGL‘s
process was given a finding of No Significant Impact by the BLM. The
transaction may be subject to applicable regulatory approvals.
“We are extremely pleased to be working with
IDT, a company that shares our values and approach to solving the energy
challenges facing our country and the world,“
said Wes Perry, EGL‘s President. “EGL‘s
mission is to be a good steward of the asset, providing for an energy
independent America in an environmentally conscious manner.“
Howard Jonas, Chairman of IDT Corporation, stated: “We
are extremely excited to join forces with EGL in this effort. A
successful development of this resource will help break our country‘s
dependence on imported oil, greatly improving our national security
while making a significant contribution to the US economy.“
About EGL
E.G.L. Oil Shale, LLC is a subsidiary of EGL Resources, Inc., a
privately owned independent oil & gas company with operations in the
southwestern United States. EGL Resources is a working alliance of
petroleum geologists, geophysicists, engineers, management and property
operating professionals based in Midland, Texas.
About 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 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.
