A prototype installation should commence late Summer 2009, with full field-test in 2010

By Art Mass

A subsidiary of a Boston-based company has announced plans to test oil shale development technology on private land in western Colorado’s Piceance Basin.

General Synfuels International, a wholly-owned subsidiary of Earth Search Sciences, Inc., (OTC Bulletin Board: ESSE) has obtained access to about 500 acres with the near-term potential to recover about 700 million barrels of oil or oil equivalents, in order to test its technology, although the specific acreage location was not disclosed. Earlier this year the company announced the successful completion of a proof-of-concept” prototype at Industrial Systems (ISI) in Delta on thw Western Slope.

GSI claims its breakthrough technology has low environmental impacts and is “energy-self-sustainable.” In addition, the gasification process would be applied to oil shale still underground. The company also said it has reached an exploration agreement with a subsidiary of Anadarko Petroleum Corp. in Wyoming. The agreement covers about 160 acres on a Union Pacific Railroad section near Rock Springs.

The two agreements will enable GSI to test and develop its technology to recover fuels from oil shale, oil sands and heavy oil. It is also evaluating another 2,500 acres of oil shale mineral rights near the 500-acre Colorado parcel.

GSI is owned by Earth Search Sciences Inc., which specializes in mapping and identifying of surface minerals and other substances from high altitudes. GSI said it believes results of its gasification tests should be known within 24 months.

“An impressive team of innovators from the oil, gas, chemicals, and mining industries have applied their best thinking to advance our ground-breaking technology to develop domestic energy resources and help secure U.S. energy independence,” said Michael Lockhart, CTO of Earth Search Sciences and Chief Scientist of GSI. ”

Energy experts are favorably impressed.

“We have been involved with oil shale projects since the 1980s and believe
GSI’s innovative technology is years ahead of the competition - possessing
both process and environmental advantages,” said Bob Isom, President of ISI.
“It will be deeply gratifying to have designed a system that will prove the
technology’s feasibility in the field, particularly if its commercial
application translates into energy independence for the U.S.”

Lewis Lugo, CEO of Earth Search Sciences, said moving forward
with the field test will provide engineering and production
data to establish the basic economics that will drive the
success of his technology on a commercial scale.

“The key factors - from our technology’s minimal environmental impact and very
low use of water to its potential to efficiently and inexpensively produce
market-ready products - have the power to strengthen our company and our
country,” said Lugo. “Further, we expect the gasification process to yield
positive results in a matter of months, not years.”

“The property is optimal for an R&D project because of its
proximity to existing infrastructure, transportation and access
to a highly qualified work force,” added Lugo.

Sixteen environmental groups pointed to the GSI deal as an
argument against the Bureau of Land Management proceeding with
a second round of oil shale research, development and
demonstration leases on federal lands. The companies already
control extensive private oil shale lands, the groups said in a
recent news release.

The American Petroleum Institute said the federal RD&D program
is “an important step in developing U.S. oil shale resources”
and should be expanded.