TIDMTOM
RNS Number : 0426L
TomCo Energy PLC
08 September 2021
8 September 2021
TOMCO ENERGY PLC
("TomCo" or the "Company")
AGM Statement
TomCo Energy plc (AIM: TOM), the US operating oil development
group focused on using innovative technology to unlock
unconventional hydrocarbon resources, announces that at the
Company's Annual General Meeting ("AGM"), being held later today,
TomCo's Non-Executive Chairman, Malcolm Groat, will make the
following statement:
"These are exciting times for TomCo and I am particularly
pleased with the considerable progress that has been made in recent
months with our focus on Greenfield Energy LLC ("Greenfield") and
its plans to pursue the construction of an initial 5,000 barrels of
oil per day ("bopd") production facility at the earliest
opportunity.
"On 9 June 2021, we announced Greenfield's potential acquisition
of up to 100% of the ownership and membership rights and interests
in Tar Sands Holdings II LLC ("TSHII") (the "Membership
Interests"), (the "Agreement"). Greenfield has now paid a total
non-refundable deposit of US$300,000 to secure an exclusive option
to acquire an initial 10% of the Membership Interests for US$2
million, payable on or before 1 October 2021. The deposit of
US$300,000 can be credited against the US$2 million cost of
acquiring 10% of the Membership Interests. Assuming a successful
completion of the acquisition of the initial 10%, Greenfield will
then have an exclusive option, at its sole discretion, to acquire
the remaining 90% of the Membership Interests for additional cash
consideration up to 31 December 2022, as detailed in the 9 June
2021 announcement.
"TSHII owns approximately 760 acres of land and certain
non-producing assets (the "Site") in Uintah County, Utah, USA.
Subject to securing the requisite funding and the completion of
satisfactory due diligence, Greenfield plans to use the Site, if
ultimately acquired via TSHII, for the potential future mining of
oil sands and construction of a commercial scale processing plant.
The Site has existing infrastructure, plant and equipment, together
with an existing Large Mine Permit No. M0470032, that could
facilitate any future development by Greenfield.
"Greenfield is in advanced discussions with potential off-takers
of both oil and sand from the Site and the results from the due
diligence exercise, that is substantially complete, have so far
been positive and it appears ideally suited for the construction,
subject to funding, of Greenfield's first commercial scale plant.
Whilst there can be no certainty that the due diligence exercise
will be satisfactorily concluded or that Greenfield can secure the
required funding to complete the acquisition of 100% of the
Membership Interests, I remain optimistic, based on discussions to
date, that the process can be completed and the required funding
secured.
"Just over two months ago, on 2 July 2021 we announced that
Greenfield had successfully completed all of its planned trial work
utilising Petroteq Energy Inc's existing oil sands plant at Asphalt
Ridge, Utah (the "POSP"). This provided the essential data and
information that was required to inform the FEED (Front-End
Engineering and Design) study, together with providing valuable
knowledge that we believe can be utilised in commercial scale
plants.
"Towards the end of July 2021, we received the finalised FEED
study, together with the associated third-party technical
verification report . The FEED study outlined better economics for
the proposed plant than we had initially envisaged, together with
providing verification that the proposed technical approach is
appropriate.
"Further to an agreement reached with Valkor LLC ("Valkor"), as
announced on 26 August 2021, TomCo now owns 100% of Greenfield ,
with full control, thereby affording TomCo's shareholders the
opportunity to fully benefit from Greenfield's significant
potential, whilst retaining Valkor as a valued stakeholder and
planned substantial shareholder in the Company . The consideration
for the acquisition only becomes payable upon Greenfield receiving
funds from, or drawing upon, a loan or credit facility in
connection with the construction of an oil sands processing
facility as specified in the FEED study, which I believe serves to
demonstrate Valkor's confidence in our plans and ability to
deliver.
"To assist Greenfield in progressing its plans for the Site and
the securing of further funding to develop and acquire the
membership interests in TSHII, the Company has engaged specialist
oil and gas industry advisers experienced in the structuring and
securing of such financings. They are currently exploring a number
of potential funding options.
"Additionally, Greenfield has commenced detailed engineering and
design work in connection with its future plans for the Site
including engaging Stantec Inc, a global design and delivery firm
with extensive experience in the oil and gas and mining sectors, on
mine planning for the Site, and working with Netherland Sewell
& Associates, global petroleum consultants, on a Site reserves
report, together with other preparatory work . This is in addition
to the continuing detailed engineering design and planning work
being undertaken by Valkor.
"The focus of everyone at TomCo remains firmly on completing the
remaining due diligence on TSHII and the Site, and progressing the
necessary funding package in order to, inter alia, secure the
initial 10% Membership Interests and further progress the detailed
planning to 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."
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 / Florence Chandler +44 (0)20 3934 6630
For further information, please visit www.tomcoenergy.com .
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