Member Info for ART123

Phase 1 was a bit of a punt that showed some very positive results but now the management have a better knowledge of what is here and where they can target the holes the results could improve considerably - as we can already see from the assays released today.

Huge potential here. At £100M m/cap the shareprice will be nearly 12p and at £200M double that.

To get somewhere near the m/cap of Solg and GGP the shareprice will be more like 75p. Funnily enough that is very doable if they get near the prospective 2 million ounces of copper which would give a inground value more than double GGP's 4.3M ounces of gold Jorc resource.

No dilution due as they are funded for 20,000 metres over 6 months starting mid July. Phase 2 was for 8000 metres over 13 holes - 07 to 19 - and today they say holes 20 and 21 are underway so it looks like they are immediately continuing on to complete the full 20,000 metres.

Each drill has only taken about a week and with 2 ongoing at a time there should be a mass of assays coming soon - plus further drilling.

Small sp rise today but this was 8p/9p earlier on the year so there's a long way to go. M/cap is a very modest £38M at 4.5p.

Valkor will only be issued with their TOM shares as payment for their previous 50% stake in Greenfield if Greenfield (now 100% owned by TOM) get the full funding to build the plant - and that is only after they have first acquired the land.

So effectively Valkor are assigning zero value to the project and walking away. If they had any confidence in this project they would have stayed on board and kept their 50% ownership and helped to acquire the funding with their far greater experience and reputation.

Instead they appear to have walked away before any financial commitment was due (so far TOM has provided all of the funding while Valkor have supplied the technical know how as their contribution). Now though hard cash is required to buy the land lease and it appears that Valkor did not want to spend any of their own cash.

Maybe they had just been playing along with TOM while they spent their shareholders cash on some wild dream with nothing spent and no value placed on this fantasy project.

TOM meanwhile continue to rant about the viability of this, even though they never even managed to reach the magical 250 bopd. 180 bopd was the most they managed, even after a very, very extended test which required extra funds. They claim the new site has better oil sands but I can't see prospective funders stumping up the required cash on just that wild claim.

Just my opinion.

Very exciting times, indeed!!!

It's a shame that Valkor didn't share their enthusiasm as they might have stayed on board and TOM would only now have to stump up 50% of the funding requurement.

Anyway, TOM now need to find $1.7M (which we know from the Interim Results they do not have) by the end of October (or risk losing the $300K as they keep explaining), followed by another $16.25M within 12 months (or risk losing the $2M).

That is just to acquire the land on which to build the plant which will then require a further $110M minimum funding - and all from a company with a m/cap of about £8M.

How exciting is that.

Nevermind, at least it looks like they are going to get a take off agreement for this so far unfunded, fantasy project.

Just my opinion.

Thank you Craggs. At least someone here is still in the real world.

Unfortunately, that info from last November is out of date. It took Greenfield a lot longer to try to reach the 250 bopd than they expected and that has obviously resulted in a cash burn.

The interim results of 22cnd June 2021 give a more up to date analysis:

"As at 21June 2021, TomCo had approximately £1,390,000 of cash reserves available to it. The Board believes that the Group has sufficient funds to cover its expected and normal outgoings for the next 12 months. However, we anticipate needing to raise additional funds in the event a decision is made to exercise our option to acquire the abovementioned site (Tar Sands Holdings II LLC ("TSHII") and commence work on our first full-scale oil sands plant and related matters."

So this says that the remaining cash from the sum retained will now be used to cover expenses and they anticipate needing to raise additional funds in the event a decision is made to exercise our option to acquire the abovementioned site (Tar Sands Holdings II LLC ("TSHII").

And this is only for the 10% deposit. They will then need to raise an additional $16.25Million - and that will need to be done and completed before they can look to raise any construction funding.

As regards the funding, which is just a fantasy at the moment, the interims said the following:

"Alongside the potential acquisition, Greenfield is also in the early stages of exploring possible financing opportunities for the potential project."

and

"The contractual balance due if Greenfield was to assume full ownership of the site via TSHII is up to approximately US$16 million (dependent on the timing of the option exercise) and, at this stage, we envisage that Greenfield would require funding in excess of US$110 million for the construction of the first plant, the vast majority of which it would seek to finance by way of debt. Should Greenfield proceed with the acquisition, TomCo will work closely with its joint venture partner to explore the most appropriate financing solutions for the requisite funding."

So the sum required is in excess of £110M which TomCo now have to find on their own after the rather inconvenient pull out of their partner before any financial commitment was made.

So yes. there is a placing on the way to pay this initial deposit on the land.

I see that none of the ramping posters on here had bothered to notice that the 120 days due diligence on the land acquisition was due to expire today.

Before they can build a plant they need land to build it on and at $18.25M this land is quite expensive.

Back in June, when this land acquisition was first announced, Greenfield was still owned by Valkor and TOM. Now Valkor have sold their 50% share of Greenfield to TOM, the latter now have to find 100% of this $2M.

I see Valkor very conveniently pulled out and dumped their 50% ownership before any real commitment had been made - and any cash spent on what is still just a "fantasy" project.

TOM now have to raise this cash requirement in the next 30 days or forfeit their $300K deposit. Placing anyone?

So TOM, having already missed the 1st Sept deadline putting their non-refundable deposit at risk of forfeiture, now have until 1st October to pay the remaining $1.7M of the 10% initial interest - do they have this cash or even part of it or is it due to come from another up to 50% discounted placing???

Then they have another 12 months to come up with another $16.25M to acquire 100% ownership of the land on which to build their site. Is this going to be another 50% discounted placing?

And this is only for the land on which to build their tar sands project!!

Then TOM need to get $185M funding - which is I believe the sum quoted a while ago - which sum incidentally will probably have risen by some percent when they get a firm quote - to get this project up and running.

With a m/cap of £8M or thereabouts these are just fantasy figures, as are the production figures being bandied about on this board.

First, though, is there going to be a discounted placing to find the rest of this 10% initial deposit.

Just my opinion!

Valkor owned 50% of Greenfield. If these shares are issued at any time in the next 3 years they will own around 25% of TOM and that is assuming that there is no further dilution, not even for running costs.
Are Valkor completely mad?
Would they say goodbye to 25% of the project and probably more after further dilution if they had any confidence in its success? No, of course not.
They would of stayed on board and found their share of the funding and helped TOM find their share.
Instead they have sold out quick. I wonder why?

The only plus here is that the shares will not be issued to Valkor unless TOM find the funding.
Both sides know the project is dead in the water.
Maybe TOM should go back to their 'also failed' turbo shale project - though it's probably too late in the year for now
Maybe next year.
As for the funding - well at least they have 3 years to try and get it sorted. Not much hope now though since Valkor have walked away from funding their 50% share.

The RNS is badly worded.
TOM haven't acquired Valkor's 50% of this project. They have been left with it. It has been dumped on them.
Valkor have walked away and will not continue with this project. They are not prepared to fund their 50% of the set up costs. They must have decided the sums do not work out.
TOM now have to find someone to fund their ex partners share as well as their own share.

Production never actually reached the target 250 bopd and took forever even to get anywhere near it.
Valkor have obviously decided that the project is not financially viable - or why else would they walk away from it?
TOM are now left trying to fund this alone - which it is pretty obvious will never happen.

So it appears that Valkor have walked away from this project and left TOM no option but to buy their 50% - or scrap it which might have been the better option. Valkor obviously don't consider it to be viable or else why would they want out.
TOM now have to find 100% of the funding. 50% would have been hard enough but would have been helped by the much larger Valkor stumping up their own cash.
The shares will only be issued if TOM get all of the required funding within 3 years, but without Valkor this is now very unlikely.
This looks to be more of a failed project decision which TOM are not quite facing up to.

After the drilling update on 12th July the only surprise is that the drill even managed to reach TD. They had already said that the well stability was to poor to do any wireline logging and it is a surprise that they didn't have to pull out early. Maybe well stability or rather the lack of it is going to be an ongoing problem with this potential asset.

Fully funded??????

"The Company has previously been quoted US$18.5m to drill the Jade well with testing of any oil column to be in addition to this amount. Following the well engineering and design work completed with AGR, the Company has been working towards securing a rig and finalising costs for the well. The Company will now finalise these negotiations and will make a further announcement in due course."

£5M ($6.8M raised).

To say that the exercise of warrants is going to make up the shortfall is quite ludicrous. They actually need to raise around another £15M (US$20M).

Fully funded??????

"The Company has previously been quoted US$18.5m to drill the Jade well with testing of any oil column to be in addition to this amount. Following the well engineering and design work completed with AGR, the Company has been working towards securing a rig and finalising costs for the well. The Company will now finalise these negotiations and will make a further announcement in due course."

They have raised £5.02 (US$6.8). The total drill costs including testing will be 3/4 times this amount. The warrants at 12p MIGHT get taken up but only if the share price reaches between 18p and 24p first. Is that likely? No, especially with another much larger and probably more discounted placing as the more obvious option.

AJMO

I think this project was always doomed from the time the Greenfield Pre-FEED Report announced the "estimated capital cost for a 10,000 bopd Plant of US$185 million" - see RNS dated 16th September 2020.

At the time TomCo had a m/cap of about £4Million. That just doesn't work.

But not to worry, all is not lost. TomCo can always fall back on the also 'failed' TurboShale project. This would be a good excuse to raise another few Million £'s and they can maybe keep this project on hold until next winter when they can see if the operational enhancements have made the vital required improvements needed during the cold weather periods.

More to the point someone posted this on Tuesday:

"From an earlier RNS - could this be the sticking point and the reason the cessation order has been put in place...
"In order to better inform the FEED study, the joint venture has recently decided to start processing ore from the Potential Site, which has different physical characteristics to the ore previously processed by the POSP. Accordingly, Greenfield has identified certain additional enhancements that are required to be made to the POSP in order to allow for a more efficient and optimised operation, in particular to address issues caused during periods of cold weather, as recently experienced in Utah. Such requirements for additional heating within the process and the inclement weather experienced, have prevented the test production rate of the POSP from reaching the optimised target of 250 bopd per single shift. The additional equipment required to address the aforementioned issues, is now on site and being installed with completion expected shortly after Easter. Greenfield believes that this will then enable the POSP to produce at higher rates of production than achieved to date, particularly during periods of cold weather, and that the oil produced by the POSP will be of a higher overall quality."

This was from the RNS dated 1st April 2021 and I think the important point here is that this clearly stated that " Greenfield has identified certain additional enhancements that are required to be made to the POSP in order to allow for a more efficient and optimised operation, in particular to address issues caused during periods of cold weather, as recently experienced in Utah. Such requirements for additional heating within the process and the inclement weather experienced, have prevented the test production rate of the POSP from reaching the optimised target of 250 bopd per single shift."

So up to this point they have not reached the required target of 250 bopd per single shift - which basically is as good as saying that the test has failed.

In an attempt to still get this seemingly failed test to work they planned to use different ore and to make some "additional enhancements". These enhancements, which were ordered (presumably at TOM'S expense) and on-site on 1st April were intended to be installed "shortly after Easter".
The market was informed that they were installed and tested and operational by 27th April - hardly "just after Easter" which was w/end 3rd/4th April - but maybe the market was just informed late.

Whichever, the enhancements have now been in operation for nearly a month or more but the market still hasn't been informed of any improvements or of the test hitting the required target of 250bopd - and that's without the cold weather interference.

This looks like the Utah DOGM may have saved Greenfield for now as they can use this dispute as an excuse to take another few months trying to hit the elusive 250bopd per single shift.

Don't pick on my posts please. They are merely observations based on the rate of progress and newsflow from the management.

The site meeting was on the 18th and if that had resolved the matter the market would have been informed on the 19th or more likely the 20th or even the 21st - none of which has happened so it looks like this was not resolved at the on-site meeting.

TomCo have chucked £1.5M + £3.5M = £5M at this project and it just has not worked out.

It's probably better the authorities shut it down before they put any more cash into it.