TomCo investment in Red Leaf Resources (6355B)
April 19 2012 - 2:01AM
UK Regulatory
TIDMTOM
RNS Number : 6355B
TomCo Energy PLC
19 April 2012
19 April 2012
TomCo Energy Plc
("TomCo" or "the Company")
Update re: TomCo investment in Red Leaf Resources Inc.
TomCo Energy Plc, (AIM:TOM), the AIM quoted company with oil
shale assets in the State of Utah, USA, is pleased to disclose that
its $5 million investment in Red Leaf Resources Inc. ("Red Leaf")
was part of a $100 million raising by Red Leaf that created a Joint
Venture ("JV") with Total E&P USA Oil Shale, LLC ("Total"), an
affiliate of Total SA, the 5(th) largest international integrated
oil and gas company. The JV is for the development of the Red Leaf
Oil Shale assets in Utah using Red Leaf's proprietary "EcoShale"
processing technology to manufacture oil from near surface shale
rock. These assets are located close to those of TomCo's Holliday
Block in Utah and TomCo has an existing commercial agreement to
utilise the EcoShale technology.
Highlights
-- Total will pay 80% of the first $400 million spent to
commercially develop Red Leaf's existing surface mineable Utah
assets for a 50% participating interest
-- Total also invested a further $25 million in Red Leaf common
stock as part of Red Leaf's $100 million raise
-- TomCo invested $5 million in Red Leaf common stock as part of
Red Leaf's $100 million raise, such financing to be used for its
20% cost share in the JV and for other corporate purposes
In addition, Red Leaf has informed TomCo that on 19 March the
Utah Division of Oil, Gas and Mining (DOGM) approved its Notice of
Intention to Commence Large Mining Operations at Red Leaf's Seep
Ridge, conditional on a groundwater discharge permit from the Utah
Division of Water Quality. Red Leaf has already applied for a
groundwater discharge permit and is confident that it will be
issued in Q2 2012. While Living Rivers has appealed DOGM's
approval, this does not prevent Red Leaf from moving towards
production.
Paul Rankine, Interim CEO of TomCo Energy, commented: "This is a
highly significant development, not only for us but also
potentially for energy markets in general. Commercial oil shale
mining could unlock one of the world's great oil resources. The
deal between Total and Red Leaf has fully funded what is
anticipated to be the first commercial scale "EcoShale" process.
Total's full commitment of $320 million for its 50% participation
in Red Leaf's Utah assets is a meaningful investment. Red Leaf's
Seep Ridge is approximately the same size as our Holliday Block and
will have the same target full production rate of 9,500 barrels per
day. Red Leaf has now secured the funding and key permits to fully
develop the Seep Ridge project and TomCo will continue the process
towards production at our Holliday Block."
For further information please visit www.tomcoenergy.com or
contact:
TomCo Energy - 020 7766 0078
Sir Nicolas Bonsor, Chairman
Numis - Nominated Adviser 020 7260 1000
Alastair Stratton/Oliver Cardigan, Corporate Finance
James Black, Corporate Broking
Newgate Threadneedle - 020 7653 9840
Graham Herring, Richard Gotla
Notes to Editors:
TomCo Energy Plc owns oil shale leases covering approximately
3,000 acres in the Green River Shale Formation, Uinta County, Utah
in 4 separate tracts. SRK Consultants Ltd has declared a surface
mineable JORC compliant Indicated Resource of 123 million barrels
on the main tract of TomCo's Holliday Block lease.
TomCo has entered into a Licence with Red Leaf Resources Inc
(Red Leaf), which owns the EcoShale(TM) In-Capsule Process
(EcoShale), to use this unique and environmentally sensitive
technology to extract oil from TomCo's leases. Red Leaf is planning
a 9,500 bopd commercial operation at their Seep Ridge site, which
lies about 15 miles SW of TomCo's Holliday Block lease.
TomCo's strategy is to develop the Holliday Block lease as a
similar follow-on project to Seep Ridge using the EcoShale
In-Capsule Process, with the same targeted production of 9,500
bopd.
Glossary:
bopd: barrels of oil per day
JORC Code: The mineral resource classification code devised by
the Australasian Joint Ore Reserves Committee
This information is provided by RNS
The company news service from the London Stock Exchange
END
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