REG - TomCo Energy PLC - Granting of Utah Tax Credit to Greenfield

TomCo EnergyAnnouncement

15/07/2022 07:00

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RNS Number : 5727S  TomCo Energy PLC  15 July 2022

15 July 2022

TOMCO ENERGY PLC

("TomCo" or the "Company")

 

Granting of Utah Tax Credit to Greenfield

 

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 been awarded a 10 year marginal tax reduction,
with a potential aggregate value of up to approximately US$76.3 million, in
relation to its planned project activities on the Tar Sands Holdings II LLC
("TSHII") site located in the Uinta Basin, Utah, United States.  This
post-performance corporate incentive is part of the Utah Legislature's
Economic Development Tax Increment Financing ("EDTIF") programme.

 

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.

 

Under the EDTIF programme, Greenfield has entered into an agreement with the
Governor's Office of Economic Opportunity, such that in return for investing
in, and creating new jobs in, the region, it may receive up to 50% of the
additional state taxes it will pay over the 10-year life of the agreement in
the form of a Utah Legislature-authorized Rural Economic Development Tax
Increment Financing (REDTIF) tax credit.  Each year that Greenfield meets the
criteria in its contract with the state and new incremental state taxes have
been receipted and verified, it will qualify for a portion of the total tax
credit up to an aggregate amount over the 10 year period of approximately
US$76.3 million.

 

Dan Hemmert, the Utah Office of Economic Opportunity's Executive Director,
commented: "We are excited to see Greenfield's growth plans in the Uintah
Basin.  Energy Independence has never been more important to the nation, and
we are proud to support this venture which will provide significant investment
into rural Utah. We are also pleased to see the planned application of
innovative processes, aggressive carbon sequestration, and efforts to be
carbon neutral - from well to tailpipe."

 

Commenting, John Potter, CEO of TomCo, said: "The amount of local support we
have received in advancing our project to date has been outstanding and I
would like to thank everyone involved.  We believe our proposed development
project in Uintah County is based on an exceptional deposit with tremendous
potential.  We continue to make good progress with our plans for the TSHII
site and continue to advance the previously announced due diligence exercise
being undertaken by a potential financing party currently interested in
backing our plans for Greenfield.  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
(http://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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