TomCo Energy PLC - oil project development in US focused on using new technology to unlock unconventional hydrocarbon resources - Says rate of production at oil sands plant at Asphalt Ridge, Utah has been increasing and has now reached the equivalent of 180 barrels of oil a day.
Work on Asphalt Ridge field being carried out by TomCo's 50-50 joint venture with Valkor LLC, Greenfield Energy LLC.
"It remains Greenfield's expectation that it will shortly reach the targeted production level of 250 barrels of oil per day, aided by the intention to process ore with an expected higher concentration of oil, mined from the Tar Sands II site, which is subject to the membership interest purchase agreement announced on June 9," company says.
It adds: "Further shipments of oil are anticipated in due course at similar prices to the first shipment, being circa USD55 per barrel, with any change in price reflective of the prevailing oil price at the time of shipment."
Expects testing of sample from field over the coming months.
"The firm has, to date, taken an initial 40 tonnes and it is anticipated that they will take the further circa 700 tonnes of processed sand currently available, together with further sand as it is produced, over the coming weeks. The proceeds from the sale of sand are approximately USD15 to USD20 per tonne," company adds.
Current stock price: 0.71 pence, down 3.4% on Monday
Year-to-date change: up 50%
By Paul McGowan; paulmcgowan@alliancenews.com
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Tomco Energy (TOM)