TomCo Energy PLC Greenfield Update (9335D)
July 02 2021 - 2:00AM
UK Regulatory
TIDMTOM
RNS Number : 9335D
TomCo Energy PLC
02 July 2021
2 July 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 announce that
Greenfield Energy LLC ("Greenfield"), the Company's 50/50 joint
venture with Valkor LLC ("Valkor"), has now successfully completed
all of its planned trial work utilising Petroteq Energy Inc's
("Petroteq") existing oil sands plant at Asphalt Ridge, Utah (the
"POSP").
Highlights
-- Greenfield's operation of the POSP now complete
-- All data required for the FEED (Front-End Engineering and Design) study has been obtained
-- FEED study and third party verification process to be finalised by the end of July 2021
-- Greenfield now focused on completing the requisite due
diligence on the Tar Sands II site as announced on 9 June 2021
FEED Study
The work undertaken by Greenfield in operating and modifying the
equipment used in the POSP has provided sufficient information for
the FEED study (as previously outlined), to be completed, together
with the third-party verification exercise. A small number of
amendments to the FEED are currently being reviewed and a draft of
the third-party verification work has now been received. It is
therefore anticipated that the FEED study will be finalised,
together with the accompanying third party verification, by the end
of July 2021.
POSP Operations
The primary objective for TomCo's investment into Greenfield and
its subsequent operation of the POSP was to provide the operational
data to support and inform the FEED for the commercial scale 10,000
barrels of oil per day ("bopd") plant design. The POSP has broadly
met our objectives over the six month of operations to the extent
that the oil processed and produced has exceeded expectations in
both warm and cold conditions from a wide array of saturated ores.
In addition, the separation process has also identified a
profitable sand product. Greenfield had set a target of achieving a
continuous production rate of 250 bopd per 12-hour shift. Due to
numerous technical constraints, the POSP only managed to achieve
the equivalent of approximately 180 bopd during this trial period
of operation. However, the operational data from such production
has been incorporated into the process modelling performed by
Valkor and verified by a third-party engineering company with the
results and recommendations being incorporated into the FEED study
and economics. Additionally, ore processed by the POSP from the Tar
Sands II site, which is subject to the membership interest purchase
agreement announced on 9 June 2021, has identified that it is of
significantly higher oil saturation than originally thought.
Analysis of the produced oil has shown that the Basic Sediment
and Water ("BS&W") was consistently less than 0.5%, the sulphur
level was very low, at less than 0.5%, and the total hydrocarbon
content of the processed sand was on average 1.8%. A sample of
produced oil is being shipped to a large oil refinery owned by a
major US oil company for their evaluation later this week. A
three-barrel sample of produced oil from the POSP is also being
shipped to Quadrise Fuels International plc in the UK, to enable
them to assess the suitability of the heavy sweet oil produced by
the POSP for their emulsion process.
Tar Sands II
Following the ending of Greenfield's trial operation of the
POSP, the Valkor team concerned is in the process of switching over
to conduct a detailed engineering analysis of the Tar Sands II
site, including a full survey of the existing equipment and
utilities at the site. This forms part of the due diligence
exercise being undertaken by Greenfield in respect of its potential
acquisition of up to 100% of the ownership and membership rights
and interests in Tar Sands II for the potential future mining of
oil sands and construction of a commercial scale processing plant
utilising the findings of the abovementioned FEED, as outlined in
the Company's announcement of 9 June 2021.
Commenting, John Potter, CEO of TomCo, said : "I am delighted
that Greenfield have now concluded their work at the POSP and that
all the data and information required to inform the FEED study has
been obtained. Whilst there have undoubtedly been some challenges
along the way, our primary objectives have been achieved. I believe
that Greenfield is now very well positioned to seek to utilise the
design improvements and knowledge gained from operating the POSP in
commercial scale plants.
"Greenfield's focus therefore now shifts to completing the due
diligence exercise on the Tar Sands II site and progressing the
required funding package in order to pursue construction of the
first 10,000 bopd facility. These are very exciting times for TomCo
as we look to realise Greenfield's significant potential."
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)
Jon Belliss / Colin Rowbury +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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