The New Jersey-based explorer signed a prospecting agreement with the Petroleum Authority of Mongolia (PAM) concerning the 25,000-square-kilometre patch south-east of the capital, Ulaanbaatar.
The deal means Genie now has exclusive rights to explore for oil shale over about 60,000 square kilometres of Mongolian territory.
A five-year shale oil development deal struck in 2013 with PAM gave it the right to explore and evaluate the commercial potential of oil shale resources in a 34,470-square-kilometre patch, also in central Mongolia. Exploratory drilling is currently ongoing.
Yuval Bartov, chief geologist of Genie Oil & Gas, said of the latest deal: “Our analysis of the available geological evidence suggests that this license area may contain world class deposits of thick and rich oil shale well-suited for our in-situ extraction technology.”