TomCo Energy PLC Equity Placing (6167S)
26 June 2018 - 8:28PM
UK Regulatory
TIDMTOM
RNS Number : 6167S
TomCo Energy PLC
26 June 2018
26 June 2018
TomCo Energy plc (AIM: TOM)
("TomCo" or the "Company")
EQUITY PLACING
TomCo today announces that it has raised GBP650,000 (gross) by
way of a placing ("Placing") of 13,000,000 new ordinary shares of
no par value in the Company ("Ordinary Shares") (the "Placing
Shares") at a price of 5.0 pence per Placing Share.
The Placing is conditional only upon admission of the Placing
Shares to trading on AIM and was organised by SVS Securities plc,
the Company's broker.
The net proceeds of the Placing will be used to fund the
completion of the upcoming field test on the Company's Holliday
block (the "Field Test"), update the resource statement for the
Holliday Block and provide general working capital.
The Field Test will seek to build upon the successful BART
Programme completed in the early 1980s and to demonstrate the
commerciality of TurboShale Inc.'s ("TurboShale") radio frequency
("RF") technology and its ability to produce high quality oil at a
low cost of production from the oil shale at the Company's Holliday
Block. Following the appointment of the drilling contractor and the
ordering of the RF generators, the Company now having finalised its
work programme, expects the cost of the Field Test to be
approximately US$900,000 (approximately GBP680,000).
The Company will also engage a competent person to produce an
updated resource report for its Holliday Block. The update will
involve a desktop calculation being performed with the aim of
converting the current JORC Measured Resource of 126 million
barrels of recoverable oil to a SPE PRMS resource. The TomCo Board
believes this is a more relevant measurement of the resource for
the Holiday Block in relation to the utilisation of TurboShale's RF
technology.
Following completion of the Placing, the Director's believe that
the Company will have sufficient working capital through to late Q4
2018.
Admission
The Placing Shares will rank pari passu with the existing
Ordinary Shares and application will be made for the Placing Shares
to be admitted to trading on AIM ("Admission"). It is expected that
Admission will become effective and dealings in the Placing Shares
will commence at 8.00 a.m. on 10 July 2018.
Following Admission of the Placing Shares, the Company's issued
share capital will consist of 62,117,799 Ordinary Shares with
voting rights. There are no Ordinary Shares held in treasury. The
figure of 62,117,799 may be used by shareholders, following
Admission, as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the share capital of the Company
under the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.
Enquiries:
TomCo Energy plc
Andrew Jones (Chairman) +44 (0) 20 3823 3635
John Potter (CEO)
Strand Hanson Limited (Nominated Adviser)
James Harris +44 (0) 20 7409 3494
Richard Tulloch
James Dance
SVS Securities plc (Broker)
Tom Curran +44 (0) 20 3700 0093
Ben Tadd
Lionsgate Communications (Financial PR)
Jonathan Charles +44 (0) 20 3697 1209
For further information, please visit www.tomcoenergy.uk.com
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
("MAR").
About TomCo Energy
TomCo's major assets are its Holliday Block oil shale leases
covering 2,919 acres in Uintah County, Utah, USA.
Incorporated in 2017, TurboShale Inc. is the Group's technology
development company in which the Company has an 80% interest.
TurboShale holds two key patents regarding the use of radio
frequency ("RF") in the extraction of oil & gas from oil shale.
The Company believes that this relatively low-cost and
environmentally benign disruptive technology has the potential to
unlock TomCo's oil shale assets.
The objective of the proposed field test on its Holliday Block
is to build upon the successful BART Test Programme and provide the
data for a more accurate economic model for full-scale commercial
work. This will include:
-- Estimating commercial oil production flow rates
-- Reconfirmation of quality of oil produced (including low
sulphur, high API, low pour point)
-- Gas recovery and its quality
-- Produced water, volume and its composition
For further information, please visit www.tomcoenergy.uk.com
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END
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