TomCo Energy PLC Update on Red Leaf and EcoShale In-Capsule Process (4097B)
06 October 2015 - 11:37PM
UK Regulatory
TIDMTOM
RNS Number : 4097B
TomCo Energy PLC
06 October 2015
TomCo Energy plc
("TomCo" or the "Company")
Update on Red Leaf and EcoShale(TM) In-Capsule Process
6 October 2015
TomCo Energy plc today announces that the Company's technology
provider Red Leaf Resources Inc. ("Red Leaf") has released its 2014
Annual Report which contains information to the timing of
construction for its Early Production System ("EPS") capsule and
improved second generation EPS design ("EPS2").
The Red Leaf's CEO's statement contained the following
information:
"Under prevailing prices, both TOTAL and Red Leaf sought
opportunities to conserve cash. Red Leaf, for its part, was facing
the necessity of raising cash in a down oil market. Raising money
in this oil market would have been difficult for any early stage
energy company. It would have been particularly difficult for us
given that the commercial version of our first generation design
was targeted to be economic at $80/bbl oil.
In March, we reached an agreement with TOTAL to conserve cash
and dramatically slow spending in 2015/2016, bring forward ideas
for improvement into the design of an improved EPS project (EPS2),
and then re-launch full-scale construction of EPS2 in 2017. This
decision forced the cancellation of construction contracts and is
expected to result in roughly a two-year delay in the commercial
demonstration project. But this delay has created the opportunity
for the engineers to design the second generation of our
EcoShale(R) technology. Ideas for improvement that had been shelved
as we pushed to complete EPS1 are now being engineered into EPS2.
Through design simplifications, second generation capsules should
be cheaper to build and contain more oil per capsule. As a result,
we expect per barrel economics to be substantially improved
compared to first generation technology."
Red Leaf's announcement, containing the full CEO statement, can
be seen on Red Leaf's Investor Relation page at:
http://redleafinc.com/uploads/files/52_RL_Annual_Report_NO_Financials_v18.pdf
Red Leaf Resources Inc., an oil shale development company with
proprietary technology and significant resources under lease in
Utah.
TomCo will only progress with commercial-scale construction on
its Holliday Block at such time as the results of Red Leaf's nearby
EPS capsule are available.
Enquiries:
For further information, please visit www.tomcoenergy.uk.com or
contact:
TomCo Energy plc Tel: +44 20 7917 6822
Miikka Haromo, CEO
Shore Capital (Nomad & Broker) Tel: +44 20 7408 4090
Nominated Adviser
Pascal Keane / Edward Mansfield
Corporate Broking
Jerry Keen
Tavistock Communications (Financial PR & IR)
Ed Portman / Jos Simson Tel: +44 20 7920 3150
Notes to Editors:
TomCo Energy plc (AIM: TOM) is a London based, AIM-listed
company, with substantial Oil Shale assets in Utah, USA.
TomCo holds a 100% interest in two Oil Shale leases, comprising
5 blocks covering 2,919 acres in Uintah County, Utah. Independent
natural resources consultants SRK Consultants Ltd, part of the
internationally recognised SRK Group, has declared a surface
mineable JORC compliant Measured Resource of 126 million barrels on
TomCo's 1,186 acre Holliday Block lease.
The Company has entered into a licence agreement with Red Leaf
Resources Inc ("Red Leaf") for the use of their EcoShale(TM)
In-Capsule Process, a proven and environmentally sensitive
technology, to extract Oil from TomCo's leases.
Additionally, Red Leaf is planning a 9,800 bopd commercial
operation at their Seep Ridge site, which lies about 15 miles SW of
TomCo's Holliday Block lease.
Led by a highly experienced management team, TomCo's strategy is
to develop the Holliday Block lease as a similar follow-on project
to Seep Ridge using the EcoShale(TM) In-Capsule Process, with the
same targeted production of 9,800 bopd.
Glossary:
bopd: barrels of oil per day
JORC Code: The mineral resource classification code devised by
the Australasian Joint Ore Reserves Committee
This information is provided by RNS
The company news service from the London Stock Exchange
END
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