SOLV-EX <SOLV> SHELL CANADA <SHC> PACT COMPLETE
Solv-Ex Corp said it
successfully completed its oil sands pilot testing program
under its agreement with Shell Canada Limited <SHC> and
received a 250,000 U.S. dlr bonus payment.
    It also said that Shell Canada exercised its option to take
over Solv-Ex's 25 pct working interest in the construction of
the oil facility, relieving it of its obligation to raise about
62.5 mln Canadian dlrs for plant construction.
    It said 30 pct of that loan was guaranteed by the
Government of Alberta.
    In exchange for Shell's participation, Solv-Ex said Shell
is obligated to pay it an up-front royalty and a running
royalty based on the operating profits of the oil sands
facility. It said the Shell Canada 7,500 barrel per day oil
sands project will be built on Shell's oil sand lease about 40
miles north of Fort McMurray in the Athabasca region of
northern Alberta.
    Solv-Ex said the project will cost about 260 mln Canadian
dlrs. It said that following a final feasibility study the
plant should open in the early 1990s when oil prices are
expected to exceed 20 U.S. dlrs per barrel.

 Reuter
