OSEC’s Commitment to the Environment
OSEC’s Research, Development and Demonstration Plan

OSEC has a three phase research, development and demonstration (RD&D) program to mine and process oil shale from the Green River Formation.

Phase I began with the signing of the BLM lease, effective July 1, 2007, on the 160-acre RD&D site of the White River Mine. In June of 2008, Petrobras initiated a commercial feasibility study to evaluate how the White River Mine oil shale can be processed using the Petrosix Technology. The feasibility study will be completed by August 1, 2009. The results of the study will determine how the company will progress in to Phase II. It is important to note, that in the early 1980's, Petrobras tested White River oil shale in their Petrosix Pilot Plant in Brazil. The results were extremely positive, and management expects a similar outcome. From laboratory samples produced, OSEC is testing the spent shale, which is the remaining material from the oil shale rock after being processed, for various by-product uses. OSEC believes that the tests will determine that the spent shale has characteristics and properties that will enable the by-product to be used to manufacture building materials or used as construction material. Spent shale is being used in other countries for these purposes.

During Phase II, the Company expects to prepare the design requirements for, and solicit, negotiate and execute a construction contract to build, a 250-ton-per-hour shale oil processing facility to be assembled at the White River Mine site. The Company also intends to submit the application to reopen the White River Mine, commission the water and sewage treatment systems, and prepare the necessary permit applications.

Also during Phase II, the Company plans to construct a 250-ton-per-hour processing facility. The facility would include an on-site shale oil upgrading plant and shale oil product storage tanks. The Company also intends to complete reopening of the White River Mine.

During Phase III, OSEC will seek the BLM’s approval to convert the RD&D Lease into a commercial lease and secure the Preferential Lease Property. The Company will also design, construct and operate multiple 250 to 500-ton-per-hour commercial processing plants bringing its production up to approximately 50,000 barrels per day. OSEC will also work with other research groups by providing shale for laboratory tests and other developmental projects.


White River Oil Shale Mine site near Bonanza, Utah