Blue Ensign is planning to embark on an 18 month Project Development Program (PDP) at a cost of the order of US$10 million, with two primary purposes.
- laboratory and engineering studies to optimise process and engineering design parameters, and
- development of indicative costs for a nominated first Rendall plant for economic evaluations, and for comparisons with existing and other emerging oil shale processes.
This program will confirm basic process and engineering design data which will mitigate risk for the investment in the first Rendall process plant. It is also expected that the development program will result in a suite of additional patents to augment current patents.
Following the Development Program, Blue Ensign is planning to design and construct the first Rendall plant. It is expected that this plant will produce up to 4,000 bopd of synthetic crude oil and is expected to be operational during 2016.
Once the first plant is commissioned, plans will be immediately put in place to design and construct larger capacity plants. It is anticipated that the first medium sized plant will be around 15,000 bopd and would be located at Julia Creek. Such a plant could be operational by 2019. Similar sized plants could be built at other suitable locations.
The level of further scale up will be determined during the operation of this medium sized plant.
Blue ensign is confident that a single train plant capable of producing 50,000 bbl/day would be feasible and that Julia Creek could potentially support the production of up to 300,000 bopd of synthetic crude oil. This would make Julia Creek one of the largest sources of liquid fuels in Australia.
The commercialisation of the Rendall process will result in the monetisation of the Julia Creek resources on the Company’s balance sheet and greatly increase the market value of the Company’s assets.
In addition, Blue Ensign intends to acquire and develop other oil shale resources both in Australia and Overseas, either independently or by joint venture.
Blue Ensign also intends to license the Rendall technology to suitable oil shale resource owners worldwide.