Total Takes 50% Stake in AMSO; Partnership Will Develop Shale Oil in Western Colorado

14 January 2009

Total, the fifth largest international integrated oil and gas company, will acquire a 50% stake in IDT Corporation’s American Shale Oil, LLC (AMSO) subsidiary. Under the terms of the agreement, Total and IDT will jointly develop a research and demonstration program to produce and commercialize shale oil utilizing a new in-situ technology on AMSO’s federal leasehold in western Colorado.

Total will provide a majority of the funding during the research, development and demonstration (RD&D) phase of the project, and technical assistance throughout the life of the project. AMSO will continue to manage operations during the RD&D phase of the project. Total will assume management responsibilities during the subsequent commercial phase. The transaction is subject to customary closing conditions and is expected to close during the first quarter of this year.

AMSO is one of three holders of 10-year leases granted by the US Bureau of Land Management to assess, test and demonstrate the potential for commercial shale oil production in western Colorado. Once AMSO has demonstrated that its technology is “economically viable and environmentally acceptable” to the government, it will have the opportunity to expand its lease to 5,120 acres for commercial development. The rights covered by the commercial preference lease are estimated to contain multi billion barrels of recoverable shale oil.

Our investment in AMSO furthers our commitment to developing unconventional hydrocarbons. Given the magnitude of oil shale resources we believe that this project has an important long-term potential for global energy markets.

—Yves-Louis Darricarrère, Total’s E&P President