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(Alliance News) - TomCo Energy PLC more than doubled its shares in issue on Wednesday as it looks to explore new opportunities in Utah.
TomCo, which develops technology for the extraction of unconventional hydrocarbons, has raised GBP925,000 by placing 142.3 million shares at 0.65 pence each. Every two placing shares also has one warrant attached, exercisable within two years at 1.5p.
Shares in London on Wednesday morning fell 38% to 0.67p. The number of placing shares is more than double the number of TomCo shares in issue before the placing.
The funding will be used in a new partnership with Houston-based energy services firm Valkor LLC to explore oil and tar sands across leases in the Uintah basin.
London-headquartered TomCo said oil and tar sands are present on several of the leases on which it will work with Valkor, and under the terms of a memorandum of understanding the two will find a third-party to help investigate the assets.
The ultimate aim is to develop a 3,000 barrels of oil per day system from the oil and tar sands on TomCo's leases.
"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," said Chief Executive John Potter.
"I am looking forward to working with Steve Byle and the Valkor team as we develop our working relationship."
TomCo's main technology is TurboShale, which looks to use radio waves to extract oil from shale deposits. The company said following an analysis of the antenna of the technology, a number of changes have been recommended, which will be used in a new design.
TomCo will also, under its agreement with Valkor, explore the use of TurboShale on a Valkor oil sands field in Trinidad.
By George Collard; georgecollard@alliancenews.com
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