REG - TomCo Energy PLC - Greenfield Update

TomCo EnergyAnnouncement

31/05/2022 07:00

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RNS Number : 3114N  TomCo Energy PLC  31 May 2022

31 May 2022

TOMCO ENERGY PLC

("TomCo" or the "Company")

 

Greenfield 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 announce an update with respect to the Company's wholly owned
subsidiary, Greenfield Energy LLC ("Greenfield").  As previously announced,
TomCo, via Greenfield, currently owns a 10% Membership Interest in Tar Sands
Holdings II LLC ("TSHII") together 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.

 

Loan Agreement

 

On 16 November 2021, the Company announced that the acquisition of the initial
10% of the Membership Interests in TSHII had been financed by way of an
unsecured US$1.5 million loan from Valkor Oil & Gas LLC ("Valkor") to
Greenfield (the "Loan").  The Loan was scheduled to be repaid on or before 30
May 2022, however the terms of the loan have now been varied in order to
extend the repayment date to on or before 30 June 2022.

 

As a former JV partner, Valkor is considered to be a related party of the
Company (as defined in the AIM Rules for Companies) and, accordingly, the
variation of the Loan's terms is deemed to constitute a related party
transaction pursuant to AIM Rule 13. The TomCo directors, having consulted
with Strand Hanson Limited, the Company's Nominated Adviser, consider that the
variation of the Loan's terms is fair and reasonable insofar as the Company's
shareholders are concerned.

 

TSHII Drilling Update

 

Further to the Company's announcements of 10 February and 10 March 2022, the
Company is pleased to report that the drilling of the three exploration wells
on the TSHII site has been completed.

 

Initial results from the drilling met with the Company's expectations.  The
results of this drill programme are currently being assessed and confirmed by
Netherland, Sewell & Associates, Inc. ("NSAI").  NSAI will then provide
an update to its initial TSHII reserves report, as announced by the Company on
13 January 2022, in the coming months.

 

Additionally, Greenfield is currently progressing the requisite permitting for
the planned production well programme on the TSHII site following recent
changes to the relevant permit legislation.  The Company currently
anticipates that the necessary permits will be secured in time for drilling of
the wells to commence in Q3 2022, assuming the requisite funding has been
secured, with initial production then expected in Q4 2022.  The number of
wells to be permitted has been increased from five to seven.

 

Commenting, John Potter, CEO of TomCo, said: "We continue to make good
progress with our plans for the TSHII site and are pleased with the positive
results we have already seen from the three exploration wells.  We are also
advancing the previously announced due diligence exercise being undertaken by
a potential financing party currently interested in backing our plans for
Greenfield, together with other matters in relation to the TSHII site.

 

"The Company's Board has recently undertaken a site visit to Utah and met with
the Valkor team and our sand off-take partner.  Whilst in Salt Lake City the
Board also met with the Company's local professional advisers and were able to
view some of the cores recovered from the exploration wells, which are being
stored at the Utah Geological Society's core store.  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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