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Partnership Will Develop Shale Oil in Western Colorado
Total (NYSE: TOT), the fifth largest international integrated oil and
gas company, and IDT Corporation (NYSE: IDT; IDT.C) today announced that
Total will acquire a 50% stake in IDT’s American Shale Oil, LLC (AMSO)
subsidiary.
Under the terms of the agreement, Total and IDT will jointly develop a
research and demonstration program to produce and commercialize shale
oil utilizing a new in-situ technology on AMSO’s federal leasehold in
western Colorado. Total will provide a majority of the funding during
the research, development and demonstration (RD&D) phase of the project,
and technical assistance throughout the life of the project. AMSO will
continue to manage operations during the RD&D phase of the project.
Total will assume management responsibilities during the subsequent
commercial phase. The transaction is subject to customary closing
conditions and is expected to close during the first quarter of this
year.
AMSO is one of three holders of 10-year leases granted by the U.S.
Bureau of Land Management to assess, test and demonstrate the potential
for commercial shale oil production in western Colorado. Once AMSO has
demonstrated that its technology is economically viable and
environmentally acceptable, it will have the opportunity to expand its
lease to 5,120 acres for commercial development. The rights covered by
the commercial preference lease are estimated to contain multi billion
barrels of recoverable shale oil.
“Our investment in AMSO furthers our commitment to developing
unconventional hydrocarbons,” said Yves-Louis Darricarrère Total’s E&P
President. “Given the magnitude of oil shale resources we believe that
this project has an important long-term potential for global energy
markets. AMSO has a strongly skilled technical team, as well as
interesting original ideas. We look forward to working with them to
develop sustainable and environmentally responsible extraction and
processing technologies.”
“We are extremely pleased to partner with Total, one of the largest and
most technologically sophisticated oil and gas companies in the world,”
said Howard Jonas, IDT’s Chairman and AMSO’s Chairman and CEO. “Total
complements our team’s technical capabilities with unparalleled
expertise and depth in a variety of petroleum research and production
disciplines. We particularly value their dedication to finding an
approach to oil shale production that respects the unique environment of
western Colorado.”
About Total
Total is one of the world’s major oil and gas groups, with activities in
more than 130 countries. Its 96,000 employees put their expertise to
work in every part of the industry – exploration and production of oil
and natural gas, refining and marketing, gas & power and trading. Total
is working to keep the world supplied with energy, both today and
tomorrow. The Group is also a leading player in chemicals.
Total Research and Development
Total’s Research and Development Department constantly seeks to innovate
in all processes that are linked to energy. Research is centered around
four areas: knowledge of energies to optimize their development,
reliability and energy efficiency of operations, product competitiveness
and mastering environmental challenges. In 2008, Total invested one
billion dollars in Research and Development, and employed more than
4,000 researchers working in 22 research centres worldwide. Total has
also created over 600 partnerships with research organizations,
universities and large industrial groups.
About AMSO
American Shale Oil, LLC (AMSO), (www.amso.net)
a subsidiary of IDT Corporation (www.idt.net),
is one of three companies holding a U.S. Bureau of Land Management oil
shale research, development and demonstration lease of government-owned
lands in the Piceance Basin in northwest Colorado.
AMSO’s mission is to develop its proprietary technology into a
commercially viable and environmentally sound method of producing
commercial quantities of shale oil by using in-situ extraction processes.
About IDT Corporation
IDT
Corporation (www.idt.net)
is a consumer-focused multinational holding company. 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.
IDT Corporation
Investor Relations:
Bill
Ulrey, 973-438-3838
