TIDMTOM
RNS Number : 2734E
TomCo Energy PLC
10 March 2022
10 March 2022
TOMCO ENERGY PLC
("TomCo" or the "Company")
TSHII Lease Agreement with Vivakor
MoU between Greenfield and Vivakor
TSHII Drilling Update and Warrant Term Correction
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
the Company's wholly owned subsidiary, Greenfield Energy LLC
("Greenfield"), has entered into a Memorandum of Understanding
("MoU") with Vivakor Inc. ("Vivakor") covering, inter alia, the
proposed development by Vivakor of an enhanced oil sands processing
plant on the Tar Sands Holdings II LLC ("TSHII") site located in
the Uinta Basin, Utah, United States and the provision of
professional services by Greenfield . In addition, Vivakor has
entered into a lease with TSHII covering approximately three acres
of the TSHII site to accommodate its planned operations, which
includes the future supply of oil sands by TSHII.
As previously announced, TomCo, via Greenfield, currently owns a
10% Membership Interest in TSHII with an exclusive option, at its
sole discretion, to acquire the remaining 90% of the Membership
Interests for certain additional cash consideration in the period
up to 31 December 2022.
TSHII Lease Agreement with Vivakor
Vivakor has entered into a renewed lease (the "Lease"), covering
approximately three acres of land (the "Property"), with TSHII for
a term of five years, with an option to extend for a further five
years, effective from 9 March 2022, to, inter alia, accommodate
Vivakor's storage needs and planned plant operations at the TSHII
site.
It is Vivakor's intention, with the assistance of Greenfield, to
develop and enhance a pre-exisiting oil sands processing plant that
it owns on the Property. Such upgraded plant, to be operated by
Vivakor, would be designed to produce at least 1,000 barrels of oil
per day or equivalent tonnage of asphalt cement.
Under the Lease, TSHII shall supply Vivakor with such quantity
of oil sands as Vivakor determines each month, at a set minimum
saturation quality, with a maximum supply of 2,000 tons per day.
Vivakor will cover the cost of mining the oil sands and will pay
TSHII US$3 per ton of oil sands processed by way of a rental
payment for the Lease. Vivakor has paid a US$30,000 advance against
future rental payments on signing of the Lease.
MoU between Greenfield and Vivakor
The MoU covers a proposed professional services agreement
between Vivakor and Greenfield for the potential supply of certain
operating and engineering services, including sand treatment and
oil upscaling to Vivakor, such services to be provided by Valkor
LLC through Greenfield.
In exchange for its services in respect of the enhancement of
Vivakor's plant, Greenfield would be entitled to receive 50% of net
revenues received by Vivakor for any post-processed sand material
from the plant sold through offtake agreements procured by
Greenfield.
The MoU includes a binding five-year exclusivity period for
agreeing and entering into any definitive agreements covering the
abovementioned matters.
TSHII Drilling Update
Further to the Company's announcement of 10 February 2022 that
the permits required from the Utah Division of Oil, Gas and Mining
to drill three exploration wells on the TSHII site had been
received by Greenfield's wholly owned subsidiary, AC Oil LLC, the
Company is pleased to report that the drilling of such wells has
now commenced.
Initial results from the drilling have met the Company's
expectations, with confirmation that no water was encountered in
the target formation. Approximately 120 feet of cores have been
produced so far from the first well drilled (AC1) and 80 feet of
cores from the second well (AC6). The third well (AC2) is expected
to be completed next week, following which tests will be conducted
to confirm the oil saturation.
Warrant Term Correction
As announced on 4 December 2019, the Company issued 8,538,462
warrants (the "Warrants") to Turner Pope Investments (TPI) Ltd
("TPI") in connection with their services in respect of the placing
announced therein. The Warrants give TPI the right to acquire
8,538,462 new ordinary shares in the Company at an exercise price
of 0.65 pence per share, for an aggregate exercise cost of
GBP55,500. The announcement on 4 December 2019 erroneously stated
that the Warrants were exercisable for a period of two years rather
than three years as detailed in the underlying Warrant
documentation. All other terms were correctly stated and remain as
previously disclosed.
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, as amended.
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END
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