TIDMTOM
RNS Number : 5263G
TomCo Energy PLC
27 July 2021
27 July 2021
TOMCO ENERGY PLC
("TomCo" or the "Company")
Receipt of Final FEED Study and Third-Party Technical Evaluation
Report
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 received the finalised
FEED (Front-End Engineering and Design) study for production
facilities, together with the associated third-party technical
verification report on the proposed process, commissioned from
Crosstrails Engineering LLC ("Crosstrails") and Kahuna Ventures LLC
("Kahuna") respectively .
Highlights
-- FEED study updated and finalised to reflect, inter alia,
Greenfield's potential acquisition of up to 100% of the ownership
and membership rights and interests in Tar Sands Holdings II LLC
("TSH II") for the potential future mining of oil sands and
construction, subject to funding, of an initial commercial scale
processing plant, as outlined in the Company's announcement of 9
June 2021.
-- The proposed plant is planned to consist of an initial 5,000
barrels of oil per day ("bopd") train but configured for possible
expansion to 10,000 bopd via a second future train, with a total
capital cost for the 5,000 bopd train estimated at US$110
million.
-- Subject to securing TSH II, which owns a suitable site in
Uintah County, Utah, USA, and the requisite funding, the overall
engineering, procurement and construction ("EPC") phases of the
project are forecast to take 54-62 weeks, barring any significant
supply chain issues or adverse weather conditions during
construction and commissioning.
-- Third-party technical verification report by Kahuna involving
a site visit to Petroteq Energy Inc's ("Petroteq") pilot plant and
review of operating data, process simulation data and the FEED
study, supports, inter alia, indicative operating costs of
approximately US$22 per barrel of oil produced for a 5,000 bopd
plant operating 24 hours a day, 360 days a year, before corporate
costs, SG&A costs and royalty fees. Such estimated operating
costs are deemed by Kahuna to be based on valid assumptions and in
line with industry norms.
-- Greenfield is currently focused on completing the requisite
due diligence on TSH II and its site in Utah, whilst also seeking
to put in place the necessary funding package, as announced on 9
June 2021.
Further information on the FEED Study
As previously announced, Greenfield engaged Crosstrails, a
Valkor company, to develop a FEED study for the production
facilities for a 5,000 bopd oil sands project (the "Greenfield
Plant"). The Greenfield Plant is currently intended to be located
on a site to the west side of Vernal, Utah owned by TSH II as
further detailed in the Company's announcement of 9 June 2021. The
proposed plant is planned to consist of an initial 5,000 bopd train
but configured for possible expansion to 10,000 bopd via a second
future train.
The plant design will be configured to accept ground oil sands
ore, available from the TSH II site, for loading into a closed loop
process. The ore will be mixed with solvent in a continuous feed
process and the sand will then be separated and dried with the
vapor recovered in the backend. The liquid portion will be
processed to remove the balance of solids and then the solvent will
be recovered in the backend along with the other vapor. The final
products of the proposed plant are designed to be sales oil, raw
bitumen and a small diesel fraction, together with sand that meets
the State of Utah's Department of Environmental Quality's Tier 1
Screening Levels.
The FEED study describes the design data, design requirements
and general operating philosophies for the development of the
plant, including a Class 3 (+/- 25%) cost estimate of approximately
US$110 million, the detailed equipment requirements and the
estimated timeline to deliver the project.
The finalised FEED study will be utilised as the basis for the
EPC phase of the project and TomCo's directors believe that the
completed FEED study, together with the supporting third-party
technical verification report and recently completed testing
operations at Petroteq's pilot oil separation plant, serve to
provide a high level of confidence in both the potential economics
and the technical feasibility of Greenfield's plans.
Commenting, John Potter, CEO of TomCo, said : "I am delighted
the finalised FEED study has now been received, together with the
associated third-party technical verification report. The FEED
study outlines better economics for the proposed plant than we
initially envisaged, together with verification that the proposed
technical approach is appropriate.
"Greenfield's focus remains firmly on completing the requisite
due diligence on TSH II and its site in Utah and progressing the
necessary funding package in order to, inter alia, pursue
construction of an initial 5,000 bopd facility at the earliest
opportunity. These are very exciting times for TomCo as we look to
realise Greenfield's significant potential."
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.
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 .
About Kahuna
Kahuna, founded in 1999, is an energy focused project execution
firm consisting of process, mechanical, electrical, and
civil/structural engineering personnel with supporting 3D
design/drafting, advanced modelling, facility documentation, and
environmental/safety compliance services. Kahuna's team brings
decades of successful experience in the energy Industry and has
established a strong culture dedicated to quality workmanship and
delivering superior products and services tailored to each client's
specific needs. Kahuna represents clients' interests by providing
on-time engineering, project execution, and commissioning
services.
For further information see: www.kahunausa.com
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