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we were over a penny in feb. The company now has a much clearer future than then. With the new director and valkor JV. The fall like many other stocks was all panic selling due to coronavirus. IMO we will be back to over 1p very soon.
dfg4699, i have a decent sized holding and I am very confident.
Torreagusa. Are you prepared to put your shirt and everything else on Tomco?
orslega, I agree they wont take over Petroteq. I think they will go it alone with the Tomco JV and build several of these plants with production from the first one financing the second etc, etc.
Petroteq - imo there is no chance Valkor will take over Petroteq - well not unless Valkor make a massive move with big bucks. So very unlikely, certainly in this climate. Valkor will continue do deals like the one with Tomco and line up Petroteq with a licence. They have other interests in oil sands worldwide. Rinse repeat with other parties.
The PQE plant is open - not for commercial production but to demonstrate the technology to multiple parties doing due diligence: the big investment bucks for PQE investors are the licence fee - like the $2M Valkor has already signed up for - so important to keep that process running.
RNS 27/3/2020
"The Company has chosen to cut hours at the plant to reduce costs in a tumultuous ?market. Management believes it is important to keep the plant operating to continue ?production, especially to demonstrate operations to the multiple parties currently ?completing due diligence on Petroteq as part of the technology licensing process.
Petroteq is scaling back to a skeleton crew and intends to store production in ?anticipation of selling product into a rebounding market in the future".
https://ir.petroteq.energy/press-releases/detail/346/petroteq-downscales-production-citing-market-conditions
See the share price of PQE has nearly doubled this past week (although still at pretty much all time lows); the DD must be going well, lol
Part 2
So, up pop, Valkor and Tomco, with a new debt free JV Company, and Tomco with its AIM Listing and Debt Free. Valkor have the right to take a licence which IMO will not cost $2m. At this stage I think they will get it for a lot less with Petroteq in its current position. Or maybe it will still be $2m, but certainly not 'up front' It would be spread based on production imp.
So now you have a debt free company, with the backing of Valkor and the potential that comes with a London listing ready to step in and make all the money. It is a sad but true way with business that this happens a lot.
Another reason is that they are now invested in Tomco, the 2 new major shareholders are clearly connected to Valkor/Petroteq/Steve Byle. They have put in £100k each at .65p and the new director Stephen West has been placed on the board by the new major holders also holds a decent number of shares in the company.
So, with all the fantastic potential why is the Tomco Market cap still only £1.4m?
Well, sadly that is down to history. They have had leases in Utah for many years and have never produced. They have always refused to look at anything else (aside from the strange Palm Oil debacle that never went anywhere). They had the Red Leaf Resources Ecoshale opportunity that will never get off the ground in Utah, there are far too many obstacles to overcome for that to be possible anytime soon.
Plus, they have raised funds last year under the old BOD at continually lowering prices. It just did not build confidence, continual dilution, lower prices, each RNS released destroyed the SP but ultimately it was the failure of the RF test that did the damage which Tomco was never going to recover from without a new injection of new projects and new Board members.
Now Tomco has a new opportunity and for the first time ever with a proven method which is already in production in Utah on the same type of lands that the New JV will secure and that Tomco already has. They also have the backing/partnership of the very company that has designed most of the Petroteq plant which is on production.
In My Opinion.... ETC.
PART ONE.
This year imo will see Tomco either trading at 5p+ again when the JV is confirmed (at 50/50) or will be taken out by either Valkor or the NEW JV company will reverse into the TOM listing giving Valkor a majority holding of Tomco and therefore controlling interest in the London Listing.
WHY?
Well, Valkor could have gone it alone without any involvement in Tomco. They said at the start of the Non-Binding JV talks that the potential new JV company would build a plant on the leases held by Tomco in Utah, however in the latest RNS (19th March) it states they have now entered Exclusivity Agreement are looking at an area which is not on Tomco's leases, so why still move forward with Tomco? The answer is that Tomco have the London listing and they have their own leases which will come into play later.
They also have the Turboshale tech and equipment which Valkor have already stated they are interested in using on their oil production leases in Trinidad with their oil company trinidadoil.com and the potential of the oil shale project which will unlock billions of barrels once they get the tech right.
For now, IMO this is what is happening (aside from the travel lockdown). The new JV will be set up, the New JV company will secure the new leases with better oil sands locations. Then the new JV company will secure the licence with Petroteq for use of their plant tech. The New JV will reverse into the Tomco listing giving them a Listed company with hundreds of millions of barrels of proven oil to produce. At this point the SP will be in the 5p+ region (possibly a lot higher, do your own numbers based on just 500m barrels, a proven production method, and a current £1.4m market cap).
Why don’t Valkor just take over Petroteq instead?
Well it seems pretty obvious Petroteq are in difficulty right now. They are the company that have spent all the Millions of $$$ on getting the plant to work, all the testing, trials, failures, successes etc. It has left them in deep trouble by literally having to still raise a few hundred thousand dollars just last week to keep the lights on.