(Alliance News) - TomCo Energy PLC on Monday said it has raised GBP3.5 million through the placing of 777.8 million shares at 0.45 pence each as it stated its joint venture with Valkor LLC has entered into a multi-site licence with Petroteq Energy Inc.
Shares in the oil shale exploration firm were trading 23% lower at 0.48p each on Monday morning in London.
TomCo said its 50/50 joint venture with Valkor - Greenfield Energy LLC - has entered into a multi-site licence with Petroteq Energy Inc for the use of its closed loop system for use in the recovery of oil from oil sands. It noted the licence allows Greenfield to use Petroteq's oil sands technology - which includes Petroteq's processes for the recovery of oil from oil sands, patents, other intellectual property and know-how - in any future oil sands plants to be built by Greenfield in the US.
Turning to the placing, London-based TomCo said the fundraise was undertaken to progress the future plans of Greenfield Energy.
It stated that assuming Petroteq's existing oil sands plant trials at Asphalt Ridge, Utah are successful and the Front-End Engineering and Design study is completed, GBP400,000 of the new cash will be loaned to Greenfield to upgrade the oil sands plant, GBP1.3 million will be used for working capital purposes, and GBP1.5 million will used by Greenfield to secure a site for the first proposed commercial 10,000 barrels of oil per day plant using Petroteq's oil sands technology
"I am delighted that we have secured funding that, together with the multi-site licence, will enable Greenfield to move to the next stage of development. We are confident that the upgrades to the POSP and the associated trials will demonstrate that the processes used at the POSP can be scaled to a commercial level and will allow Greenfield to move forward with finalising the FEED study," said TomCo Chief Executive John Potter.
Following admission of the placing shares, TomCo's share capital will comprise 1.5 billion shares.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Tomco Energy (TOM)