REG - TomCo Energy PLC - TSHII Lease Agreement with Vivakor

TomCo EnergyAnnouncement

10/03/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220310:nRSJ2734Ea&default-theme=true

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
£55,500. 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
(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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCJLMJTMTBMTMT