TomCo Energy PLC TSHII Update (3066K)
September 01 2021 - 2:00AM
UK Regulatory
TIDMTOM
RNS Number : 3066K
TomCo Energy PLC
01 September 2021
1 September 2021
TOMCO ENERGY PLC
("TomCo" or the "Company")
TSHII 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 an
update with respect to the Company's now 100% owned subsidiary
Greenfield Energy LLC's ("Greenfield") potential acquisition of up
to 100% of the ownership and membership rights and interests in Tar
Sands Holdings II LLC ("TSHII") (the "Membership Interests"), as
announced on 9 June 2021 (the "Agreement").
Pursuant to the terms of the Agreement, Greenfield paid a
non-refundable deposit of US$200,000 to secure a 90 day period to
undertake due diligence and an exclusive option for up to 120 days
to acquire an initial 10% of the Membership Interests for US$2
million, payable on or before 1 September 2021 . The Agreement has
been amended such that Greenfield can now exercise its right to
acquire an initial 10% of the Membership Interests for cash
consideration of US$2 million on or before 1 October 2021. A
further non-refundable deposit of US$100,000 has been paid to
secure this amendment. The total deposit of US$300,000 can be
credited against the US$2 million cost of acquiring 10% of the
Membership Interests, should Greenfield elect to proceed with the
potential acquisition of the initial 10%.
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 satisfactory due
diligence, Greenfield plans to use the Site, if ultimately acquired
via TSHII, for the future mining of oil sands and construction of a
commercial scale processing plant utilising the findings of the
FEED study, and other knowledge and experience gained from
Greenfield's operation of Petroteq Energy Inc's existing oil sands
plant at Asphalt Ridge, Utah. (the "POSP"). 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 has
been positive. However, there can be no certainty that the due
diligence exercise will ultimately be concluded or that Greenfield
can secure the required funding to complete the acquisition of a
100% Membership Interest.
Additionally, in parallel with working to secure the required
funding, Greenfield has recently begun working with 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
with Netherland Sewell & Associates, global petroleum
consultants, on a Site reserves report, together with other
preparatory work.
Further announcements will be made as and when appropriate.
Commenting, John Potter, CEO of TomCo, said : "Following our
agreement with Valkor to acquire their 50% interest in Greenfield
we have been aggressively pursuing the acquisition of the Site via
TSHII. Whilst still ongoing, the due diligence undertaken on the
Site to date has been positive such that it appears ideally suited
for the construction, subject to funding, of Greenfield's first
commercial scale plant.
"Greenfield's focus is now on both progressing the necessary
funding package in order to, inter alia, secure the initial 10%
Membership Interest and with the detailed planning to pursue
construction of an initial 5,000 bopd facility at the earliest
opportunity. We look forward to announcing 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)
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 .
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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