(Alliance News) - TomCo Energy PLC on Monday said it agreed to extend its 100%-owned subsidiary Greenfield Energy LLC's purchase option exercise period to acquire Tar Sands Holdings II LLC until March 31.
TomCo is an oil development group operating in the US, which is focused on using new technology to unlock unconventional hydrocarbon resources, while Greenfield Energy LLC owns a 10% membership interest in Tar Sands.
The purchase option allows Greenfield to acquire the remaining 90% of Tar Sands shares for an additional cash consideration of around USD16.3 million.
Following the announcement on Thursday that it was in discussions to extend the exercise period, TomCo said the period was extended from its previous expiry date of Tuesday last week, which itself was agreed in late December from a previous expiry date of December 31.
Greenfield can now exercise the option at its sole discretion, TomCo said, if it delivers a notice of exercise on or before March 31 and makes payment of the agreed consideration by no later than April 5.
Shares in TomCo were up 2.4% to 0.37 pence each in London on Monday morning.
By Greg Rosenvinge, Alliance News reporter
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Tomco Energy (TOM)