TomCo Energy PLC Greenfield Commercial Trial Agreement (4802W)
August 18 2020 - 8:02AM
UK Regulatory
TIDMTOM
RNS Number : 4802W
TomCo Energy PLC
18 August 2020
18 August 2020
TOMCO ENERGY PLC
("TomCo" or the "Company")
Greenfield Commercial Trial Agreement
TomCo Energy plc (AIM: TOM), the US operating oil development
group focused on using innovative technology to unlock
unconventional hydrocarbon resources, is pleased to announce that
Greenfield Energy LLC ("Greenfield"), the Company's recently formed
50/50 joint venture with Valkor LLC ("Valkor"), has entered into a
commercial trial agreement (the "Agreement") with Quadrise Fuels
International plc ("Quadrise").
TomCo, together with its JV partner Valkor, and Quadrise,
believe that the use of Quadrise's MSAR(R) technology can add
significant value to the development of heavy and paraffinic oil
deposits in Utah. Pursuant to this, the parties have planned a
phased implementation of the MSAR(R) technology that covers:
-- a commercial trial of MSAR(R) technology at the Petroteq Oil
Sands Plant ("POSP") located in the Asphalt Ridge Facility in Utah,
USA, ("Phase 1") that is now being managed and operated by
Greenfield; and
-- the development of commercial MSAR(R) plants of up to 10,000
barrels oil per day ("Phase 2") located at Utah facilities owned or
operated by Greenfield.
The Agreement covers Phase 1 and comprises the following
activities that are planned to be completed during the remainder of
2020, subject to completion of preparatory works at the POSP
facility by Greenfield:
-- proof of concept formulation and test work at Quadrise's
research facility using oil samples supplied by Greenfield;
-- the loan of Quadrise MSAR(R) commercial production equipment
and MSAR(R) test equipment and supply of MSAR(R) additives; and
-- the supply of specialist services to assist Greenfield in completing the commercial scale demonstration trial to produce over 600 barrels (100 tonnes) of power grade MSAR(R).
The parties intend to continue to cooperate in good faith to
agree the commercial terms of a conditional MSAR(R) licence and
commercial supply agreement for the production of MSAR(R) fuel
under Phase 2. Such a conditional licence, which is now envisaged
would be provided directly to Greenfield (rather than to Valkor and
assignable to Greenfield as had been previously envisaged) will
only be finalised upon, and following, inter alia, satisfactory
results of Phase 1, the agreement between the parties as to Phase 2
commercial terms and the entry of binding agreements.
Further updates will be provided in due course as
appropriate.
John Potter, CEO of TomCo, commented: " The Agreement represents
an important milestone in the proposed upgrade and test programme
to be undertaken at the POSP, as Greenfield seeks to complete its
proof of concept work and commercial scale demonstration trial
later this year utilising the Quadrise MSAR(R) technology to
produce a premium, heavy fuel oil product suitable for retail sale.
These are exciting times for TomCo and I look forward to providing
further updates in due course. "
Enquiries:
TomCo Energy plc
Stephen West (Chairman) / John Potter (CEO) +44 (0)20 3823 3635
Strand Hanson Limited (Nominated Adviser)
James Harris / Richard Tulloch / Jack Botros +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Joint Broker)
Andy Thacker / Zoe Alexander +44 (0)20 3657 0050
Novum Securities Limited (Joint Broker)
Charlie Brook-Partridge +44 (0)20 7399 9402
IFC Advisory Limited (Financial PR)
Tim Metcalfe / Graham Herring +44 (0)20 3934 6630
For further information, please visit www.tomcoenergy.com .
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END
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