REG - TomCo Energy PLC - TSHII Update

TomCo EnergyAnnouncement

10/02/2022 07:00

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RNS Number : 2692B  TomCo Energy PLC  10 February 2022

10 February 2022

TOMCO ENERGY PLC

("TomCo" or the "Company")

 

TSHII 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 provide an update on certain recent developments in connection with
the Company's plans for a potential commercial scale project on the mining
properties comprising the Tar Sands Holdings II LLC ("TSHII") site located in
the Uinta Basin, Utah, United States.  As previously announced, TomCo's
wholly owned subsidiary, Greenfield Energy LLC, ("Greenfield"), 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 additional cash
consideration up to 31 December 2022.

 

TSHII Drilling Update

 

The Company is pleased to report that the permits required from the Utah
Division of Oil, Gas and Mining to drill three exploration wells on the TSHII
site have now been received by Greenfield's wholly owned subsidiary, AC Oil
LLC.  The drilling of these exploration wells is now scheduled to start in
early March 2022.

 

Third Party Lease

 

TSHII has entered into a 10 year lease with a tenant starting from 1 March
2022 covering an existing refinery on the TSHII site that is not required for
Greenfield's plans and was previously scheduled to be demolished should
Greenfield acquire 100% of TSHII.  The tenant intends to develop a 10,000
barrels of oil per day refinery on the site and under the terms of the lease
has two years in which to do so without potentially forfeiting the lease.

 

The lease requires the tenant to pay TSHII US$10,000 per month as a monthly
rent, together with a further US$3 production rent on every barrel of produced
hydrocarbons.

 

Commenting, John Potter, CEO of TomCo, said: "We continue to make significant
progress with our plans for the TSHII site and we look forward to the drilling
of the exploration wells in March, utilising some of the proceeds from our
recently completed placing.  In parallel, we are progressing the previously
announced due diligence exercise being undertaken by a financing party
currently interested in backing our plans for Greenfield, together with other
matters in relation to the TSHII site.  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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