TIDMTOM
RNS Number : 3714T
TomCo Energy PLC
20 March 2019
20 March 2019
TomCo Energy plc
("TomCo", the "Company" or the "Group")
Placing, 2019 Field Test Update and Additional Leases
Assigned
TomCo Energy plc (AIM: TOM), the oil shale exploration,
development and technology group focused on using innovative
technology to unlock unconventional hydrocarbon resources, is
pleased to announce that it has raised GBP600,000 (gross) by way of
a placing ("Placing") of 21,818,182 new ordinary shares of no par
value in the Company ("Ordinary Shares") (the "Placing Shares") at
a price of 2.75 pence per Placing Share ("Placing Price") through
Turner Pope Investments (TPI) Ltd ("TPI"), the Company's
broker.
The Company intends to utilise the net proceeds of the Placing
to complete the 2019 field test programme and to provide additional
working capital to the Group.
2019 Field Test Update
As previously stated, the Company's primary objective for the
2019 Field Test programme is the recovery of oil from the Company's
Holliday A Block through the application of TurboShale Inc.'s
("TurboShale") RF technology (the "2019 Field Test"). The Company
has an 80% interest in TurboShale.
The Company is pleased to confirm that the initial phase of
planning for the 2019 Field Test has now been concluded by IGES
Inc. ("IGES") and Himes Drilling Company Inc., the Group's
technical advisers, including:
-- groundwater desktop survey completed by IGES over the
Company's lease ML49571, identifying prospective 'dry' sites for
the 2019 Field Test within the Holliday A Block, similar to those
hosting the historic BART programme;
-- drilling pattern designed for 2019 Field Test, with central
production well to drain oil generated by RF antennas within the
Mahogany oil shale zone in surrounding wellbores;
-- permits for the test wells have now been granted; and
-- expected mobilisation to drill the test wells in April 2019,
in order to confirm the site for the production and antenna wells
for the 2019 Field Test.
It is currently anticipated that mobilisation for the 2019 Field
Test will begin in mid-2019, with the test scheduled to be
concluded in late Q3/early Q4 2019. Assuming a successful test, the
Company will have recovered sufficient oil to undertake analysis to
confirm the quality and potential recovery rates using TurboShale's
RF technology.
Additional Oil Shale Leases
Further to the statement made by the Company on 14 December
2018, following the approval of the transfers by the Utah School
and Institutional Trust Lands Administration ("SITLA"), the seven
oil leases have now been assigned to the Company's wholly owned
subsidiary, The Oil Mining Company Inc.
These leases (being ML 48801, ML 48802, ML 48803, ML 48806, ML
49236, ML 49237 and ML 50151) comprise, in aggregate, 12,569 acres
and are estimated to contain over 1.2 billion barrels of potential
oil (as measured by the United States Geological Society) based on
the projected thickness of the known oil shale zones. These leases
are located within the Uintah Basin, in the same Green River
formation as the Company's other two leases in Utah and
significantly increases the Company's overall acreage. The Company
confirms that there will be minimal ongoing costs in respect of
these additional leases in the short term.
Admission
The Placing is subject to normal conditions including, inter
alia, admission of the Placing Shares to trading on AIM.
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 27 March 2019.
Following Admission, the Company's issued share capital will
consist of 117,612,452 Ordinary Shares with voting rights. There
are no Ordinary Shares held in treasury. The figure of 117,612,452
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.
The Company has also issued 1,309,091 warrants to TPI, giving
them the right to acquire such number of new Ordinary Shares at an
exercise price of 2.75 pence for a period of two years.
John Potter, TomCo's CEO, commented: "I am pleased to outline
the 2019 Field Test programme following the completion of all the
desktop work, undertaken in conjunction with our independent
technical consultants. Following the identification of prospective
'dry' sites, we will look forward to completing the test wells and
to completing the field test.
The main objective of the 2019 Field Test is to recover oil
using TurboShale's RF technology to heat kerogen in-situ. With the
funds raised through the Placing, I am delighted that we are able
to move forward to complete the 2019 Field Test and look forward to
keeping shareholders updated as we progress through the year."
Enquiries:
TomCo Energy plc
Andrew Jones (Chairman) +44(0)20 3 823 3635
John Potter (CEO)
Strand Hanson Limited (Nominated Adviser)
James Harris +44 (0) 20 7409 3494
Richard Tulloch
James Dance
Turner Pope (Broker)
Andy Thacker +44 (0)20 3621 4120
For further information, please visit www.tomcoenergy.com
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
("MAR").
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END
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