Hi postie,

It is oil-shale: kerogen bearing rock/shale.

When you have a more conventional hydrocarbon reservoir, the hydrocarbons in this reservoir are originated from a so-called source rock. This source rock is rich in organic matter. This organic matter is deposited millions of years ago. In order to form hydrocarbons its has to come into a certain temperature/pressure window. At one point oil will be formed, and if temp/pressure increases, gas will be formed as well. This process is also a function of time.

The Kerogen Oil shale is such a source rock, however, it either just didn't make this window, or wasn't long enough in this hydrocarbon window. With current techniques, we are able to give this kerogen its last push to generate the hydrocarbons.

Umatac here in Calgary has been involved with oil shale processing, and I believe some of our core were sent to them a after wells were drilled. Here is a wikipedia site for the process they used. (http://en.wikipedia.org/wiki/Alberta_Taciuk_Process).At the GM Marc was talking about costs of mining and processing, and estimated this at 22-30$/bbl.

Hope this answers your question,

Martijn