TIDMTOM
RNS Number : 5706V
TomCo Energy PLC
04 December 2019
4 December 2019
TOMCO ENERGY PLC
("TOMCO" OR THE "COMPANY")
Placing, Valkor oil sands opportunity and TurboShale Update
TomCo Energy plc (AIM: TOM), the oil shale exploration,
development and technology group focused on using innovative
technology to unlock unconventional hydrocarbon resources,
announces that it has raised GBP925,000 (gross) by way of a placing
("Placing") of 142,307,692 new ordinary shares of no par value in
the Company ("Ordinary Shares") (the "Placing Shares") at a price
of 0.65 pence per Placing Share ("Placing Price") through Turner
Pope Investments (TPI) Ltd ("TPI"), the Company's broker. The
number of Placing Shares to be issued represents approximately 107
per cent of the Company's current issued share capital.
Every two Placing Shares have one warrant attached, with each
warrant having the right to acquire one new Ordinary Share at an
exercise price of 1.5 pence for a period of two years from the date
of the admission of the Placing Shares.
The Company intends to utilise the net proceeds of the Placing
to undertake a proposed resources report and engineering study for
the potential oil/tar sands opportunity referred to below, to
complete the design revisions of the TurboShale system and to
provide general working capital.
Valkor oil sands opportunity
Whilst the Company's focus has been on advancing TurboShale's RF
technology, the Company has also continued to explore other
opportunities for the Groups oil shale leases within the Uintah
Basin, Utah, USA ("Leases").
The Company is therefore pleased to announce that it is has
entered into a non-binding memorandum of understanding ("MoU") with
Valkor LLC ("Valkor") pursuant to which the Company and Valkor will
explore the oil/tar sands potential across the Leases. Valkor is an
international Engineering, Procurement, Construction and
Installation ("EPCI") and field operations company, with operations
in the US, South America and Africa both on and offshore and the
owner and operator of gas and oil fields in Trinidad, USA, Turkey
and the Ukraine. Through their subsidiary, Valkor Energy Services,
they have assisted with the design improvements of Petroteq Energy
Inc's ("Petroteq") closed loop system for use in the recovery of
oil from oil sands over the last 18 months and this will bring
valuable experience and knowledge to TomCo in looking at the
oil/tar sand opportunity across its Leases.
Oil/tar sands are present on several of the Leases and, as they
tend to be present around the surface, the Board believes that they
should be suitable for surface mining subject to completion of the
applicable studies and analysis. Unlike oil shale, which requires a
heating process to convert the kerogen in the shale into oil,
oil/tar sands already contain oil and so only require a separation
process to separate it from the sand.
Under the MoU, the parties shall seek to agree the scope of a
study, to be undertaken by a suitably qualified third party and
managed by Valkor, on at least one of the Leases, to determine the
location of any oil/tar sands, the potential quantum available to
be recovered together with a plan for the mining and processing of
any such oil/tar sands. Subject to the findings of the study,
Valkor shall also undertake an engineering study to determine the
location for a proposed facility, preliminary plant design and
economic analysis for the development of a 3,000 barrels of oil per
day system from oil/tar sands on the Group's leases.
In addition, under the MoU, the parties shall explore the
potential for the use of TurboShale's RF technology in an oil sands
field operated by Valkor in Trinidad.
TurboShale update
Following the Company's announcement of 3 October 2019, the
Company is pleased to confirm that Continental Electronics has
completed its analysis of the antenna, as a result of which it has
recommended a number of modifications to the setup of the antenna.
These will be incorporated into a revised design of the wellhead
for which the Company will be engaging a third-party engineering
company. The revised wellhead will allow for a more efficient
connection of the RF transmission line from the transmitters to the
antenna, an integration of the nitrogen supply into the well via
the antenna, to ensure its accurate delivery down the well, and a
separation of the hydrocarbon recovery system from the antenna.
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 10 December 2019.
Following Admission, the Company's issued share capital will
consist of 275,759,235 Ordinary Shares with voting rights. There
are no Ordinary Shares held in treasury. The figure of 275,759,235
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 8,538,462 warrants to TPI, giving
them the right to acquire such number of new Ordinary Shares at an
exercise price of 0.65 pence for a period of two years.
John Potter, CEO, commented: "The introduction to Valkor
provides a number of exciting opportunities to the Group. Valkor's
experience in the oil/tar sands space, given their work and
relationship with Petroteq, provides TomCo with another avenue to
potentially unlock the value of its Leases. I am looking forward to
working with Steve Byle and the Valkor team as we develop our
working relationship."
Enquiries:
TomCo Energy plc
Andrew Jones (Chairman) / John Potter (CEO) +44 (0)20 3823 3635
Strand Hanson Limited (Nominated Adviser)
James Harris / Richard Tulloch / James Dance +44 (0)20 7409 3494
Turner Pope (Broker)
Andy Thacker / Zoe Alexander +44 (0)20 3657 0050
For further information, please visit www.tomcoenergy.com.
Note to Editors
Valkor LLC operates a 773-acre oil field, Parrylands Block E, in
Trinidad with more than 120 wells and 80 million conventional
barrels of heavy oil. A reserve report was conducted with Chapman
Engineering in 2019 to also confirm an additional estimated 69
million barrels of shallow oil sands on the property. Valkor has
developed RF in other technology areas, such as natural gas
processing and Volatile Organic Compound (VOC) recovery, in
cooperation with a major chemical company. www.valkor.com
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
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END
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