TomCo Energy PLC Further Update re TSHII (2933N)
September 29 2021 - 2:00AM
UK Regulatory
TIDMTOM
RNS Number : 2933N
TomCo Energy PLC
29 September 2021
29 September 2021
TOMCO ENERGY PLC
("TomCo" or the "Company")
Further Update re TSHII
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 with respect to the Company's 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").
The Company is pleased to announce that it has now
satisfactorily completed its due diligence exercise on TSHII and
the approximately 760 acres of land and certain non-producing
assets (the "Site") in Uintah County, Utah, USA, owned by
TSHII.
Pursuant to the terms of the Agreement and its subsequent
amendment, Greenfield paid a non-refundable deposit of US$300,000
to secure an extended period to undertake due diligence and an
exclusive option to acquire an initial 10% of the Membership
Interests for US$2 million, payable on or before 1 October 2021 .
The Agreement has now been further amended by the parties 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 15 November 2021, in return for the payment of a further
non-refundable deposit of US$200,000 which has been made.
Greenfield is currently in detailed discussions with a third
party which is funding an extensive in-situ oil production
programme adjacent to TSHII's land, accessing resources deeper than
Greenfield envisages mining for its purposes. As part of these
discussions, the third party would potentially provide sufficient
funding to Greenfield to enable up to five wells to be drilled on
TSHII's land along with the requisite infrastructure, with an
associated 'off-take' agreement serving to provide sufficient
upfront funding to enable Greenfield to acquire the initial 10% of
the Membership Interests in TSHII to be repaid from the sale of the
oil produced.
The extension of the abovementioned exclusive option to 15
November 2021 has been agreed to facilitate the ongoing funding
discussions for the initial 10% acquisition, however there can be
no certainty that a suitable agreement will be reached with this or
another third party or as to the terms of any such funding.
As previously announced, the deposit, now totalling US$500,000,
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 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.
Greenfield is exploring various other funding options to
potentially achieve the acquisition of 100% of the Membership
Interests, whilst continuing other preparatory work. However, there
can be no certainty that Greenfield can secure the requisite
funding.
Further announcements will be made as and when appropriate.
Commenting, John Potter, CEO of TomCo, said : "We are delighted
to have completed our comprehensive due diligence exercise on TSHII
and its Site and that the Site appears ideally suited for the
planned future construction, subject to funding, of Greenfield's
first commercial scale plant.
"During the due diligence exercise, it has become apparent that
there is the potential for deeper resources than those Greenfield
envisages utilising, thereby opening up further potential funding
routes. Greenfield is now focused on commercial negotiations with
the third party concerned in order to seek to secure the funding
for the initial acquisition of 10% of the Membership Interests and
progress its plans. We 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)
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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