(Alliance News) - TomCo Energy PLC on Wednesday said it has raised GBP1.5 million through share placing to fund the development of an oil sands plant in the US state of Utah via formation of a new joint venture company with engineering company Valkor LLC.
The London-based oil shale exploration and technology company has placed 375.0 million new shares at 0.4 pence per placing share. Shares in the company were down 30% at 0.42 pence each on Wednesday morning.
Proceeds from the placing will be used by TomCo to form a new joint venture company Greenfield Energy LLC with Valkor LLC to pursue the development of an oil sands plant at Asphalt Ridge, Utah.
A study provided TomCo with sufficient comfort to enter into a joint venture with Valkor to pursue the development of a plant utilising the oil sands technology.
Greenfield will utilise the existing know-how of Valkor to upgrade the existing Petroteq oil sands plant in order to carry out small scale test operations, so as to assist with the determination of the design of a scaled version of a commercial scale plant.
The most significant upgrade to the Petroteq oil sands plant will be the addition of Quadrise Fuels International PLC's MSAR process, which will seek to further process the oil into a premium, heavy fuel oil product for retail sale.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Tomco Energy (TOM)