TomCo Energy PLC Greenfield Update (3028A)
June 01 2021 - 2:00AM
UK Regulatory
TIDMTOM
RNS Number : 3028A
TomCo Energy PLC
01 June 2021
1 June 2021
TOMCO ENERGY PLC
("TomCo" or the "Company")
Greenfield Update
TomCo Energy plc (AIM: TOM), the US operating oil development
group focused on using innovative technology to unlock
unconventional hydrocarbon resources, is pleased to provide a
further update in respect of the work being undertaken by
Greenfield Energy LLC ("Greenfield"), the Company's 50/50 joint
venture with Valkor LLC ("Valkor"), with respect to Petroteq Energy
Inc's ("Petroteq") existing oil sands plant at Asphalt Ridge, Utah
(the "POSP").
The Company has now received a draft of the FEED (Front-End
Engineering and Design) study that has been previously outlined.
This includes data from testing a number of items of additional
equipment that could be utilised in potential future commercial
scale plants, as well as reflecting input from a subsidiary of a
leading global oilfield services company to further optimise the
efficiency of the POSP's solids control process. Furthermore,
significant work has been undertaken as part of the test operations
and FEED study to identify how best to process the various types of
ore that are likely to be encountered.
The FEED study will be finalised following the Company's and
Greenfield's review with the third-party verification exercise on
the process also nearing completion, with all planned on-site
activities having been undertaken. It is therefore currently
anticipated that the FEED study and the third party verification
work will be finalised by early July 2021.
Further to the lifting of the Cessation Order on 25 May 2021 and
resumption of operations at the POSP, the rate of production has
been increasing such that Greenfield anticipates that it will
shortly reach the targeted production level of 250 barrels of oil
per day.
Oil of sufficient quality and quantity has now been produced by
the POSP to enable an initial shipment of 250 barrels of oil to be
made. Greenfield is also working with a local specialist firm to
identify potential customers for the processed sand. They have
already taken an initial load of 40 tonnes and is anticipated to
take a further circa 500 tonnes of processed sand over the coming
weeks. All proceeds from the sale of oil and sand will be retained
in Greenfield.
In addition, Valkor, on behalf of Greenfield, is currently in
discussions with the landlord of the POSP site to seek an extension
to Greenfield's lease for a further six months from 1 July 2021.
Should an agreement be reached, Greenfield would then intend to
continue operating the POSP for as long as necessary in order to
provide an appropriate demonstration site for potential funders of
the planned future commercial scale plants.
Further updates will be made as operations progress.
Commenting, John Potter, CEO of TomCo, said : "Despite the short
interruption from the Cessation Order, I am very pleased with the
progress that has been made. Receipt of the draft FEED study and
the production of the first load of oil for sale from the POSP are
significant milestones for both Greenfield and TomCo. I believe
Greenfield is now well positioned to move forward with sourcing the
requisite funding for the potential construction of its first
commercial scale plant and look forward to providing further
updates in due course."
Enquiries :
TomCo Energy plc
Malcolm Groat (Chairman) / John Potter (CEO) +44 (0)20 3823 3635
Strand Hanson Limited (Nominated Adviser)
James Harris / Matthew Chandler +44 (0)20 7409 3494
Novum Securities Limited (Broker)
Charlie Brook-Partridge / Jon Belliss +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 .
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
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