(Alliance News) - TomCo Energy PLC on Wednesday said its Greenfield Energy LLC joint venture is progressing well with plans for its oil production plant.
Shares in the oil shale exploration firm were trading 12% higher at 0.57p each in London trading.
Greenfield, which is 50% owned by TomCo, is currently pursuing plans to construct an initial 5,000 barrels of oil per day production facility. Considerable progress has been made on the project in recent months, Non-Executive Chair Malcolm Groat said.
Groat added that he was confident Greenfield could secure the required funding to buy 100% of Tar Sands Holdings II LLC, which owns around 760 acres of land and certain non-producing assets in Utah, US. If bought, the land could be used for the mining of oil sands.
The site also has existing infrastructure, plant and equipment, together with an existing large mine permit, that could quicken any future development by Greenfield.
"Greenfield is in advanced discussions with potential off-takers of both oil and sand from the site and the results from the due diligence exercise, that is substantially complete, have so far been positive and it appears ideally suited for the construction, subject to funding, of Greenfield's first commercial scale plant," Groat said in a statement ahead of the company's annual general meeting.
By Will Paige; willpaige@alliancenews.com
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Tomco Energy (TOM)