Member Info for minimil

@Craggs - you are correct - RNS states that Greenfield are sourcing funding options (not have it already). I do not know where other posters are getting information that funding is already in place. They have the opportunity to produce this information, so I would look forward to seeing it. My posts yesterday still stand and are based on factual RNSs + my assumptions which are clearly stated.

@Joeyang.. I have made an honest post and I am not on advn. You somehow are somewhere else. I don't really want to get into a spat with you so leave it there. Time will tell.

Clearly there are many variables and assumptions. I have assumed the following:
1. 350 days production
2. 2375 bbl/d oil to TOM
3. $60/bbl profit (inclusive of sand sales)
4. All outstanding warrants exercised at excise prices
5. Loan/placing ratio 80/20
6. Loan interest 10%
7. Profits do not include director salaries or other costs
8. Train 2 still not built

Conclusion for me is that by Q1 2023 SP will be over 10X where we are now once the plant is up and running.

IMO because of outstanding warrants below 0.5p we will not see any significant SP rise until DD Land completed. Shareholders should also be aware that there are over 705 million warrants @ 0.9p. I would expect these to be exercised once positive news on the Land DD and acquisition is announced. This will raise 6.35MM GBP for TOM. Don’t forget also the 90.5 million share options to the BOD @ 0.54p raising another 488k GBP.
For its part of the JV, TOM require about 45.6 MM GBP. If the above warrants are exercised then 38.8 MM GBP would still be required.
So back to funding.. I will define for the sake of this exercise “vast majority” to be 80% implying 20% will come from a placing which I suggest may be around 0.75p. (Feel free to suggest otherwise).
The placing will raise 9 MM GBP leaving 30 MM in debt (loan). If this is paid off at 10% interest over 3 years then TOM’s profit would still be around 23MM GBP per annum. TOM’s shares would now be around 3465 million.
A market cap of 165 MM GBP does not seem unreasonable for a company generating 36 MM GBP per annum and will be debt free in 3 years. The SP would therefore be around 4.8p.
Valkor also need to bring its funds to the party but that is my take on how TOM can deliver provided they honor their funding statement.

I thought I would start a new thread as this will be key to where the SP goes before year end. One box has already been ticked i.e. successful FEED, trials, and above all it's a commercial project.
Whatever anyone's thoughts on Greenfield the fact is that it is a 50/50 JV between Tomco and Valkor. The second box to be ticked is the DD on the land and this has been clearly defined in previous RNS including costs and the timelines. Greenfield will be in a far better position to secure loans for the $126,000,000 project once a positive DD report is issued.
The interims RNS is a little misleading because it talks about a 10kbbl/day plant then goes onto the penultimate para
“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 and commence work on our first full-scale oil sands plant and related matters. 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.”
From 27th July RNS we now know that Train 1 is for 5000 bbl/day costing $110,000,000.

More lack of patience.. why invest if you believe it's going to drag up to 5 years??? More mixed messages from another de-ramper de-pamper.
READ the RNS!

@Edgar, first Train will always cost more because it will contain the shared equipment eg storage tanks, power supplies etc. Train 2 should cost less.

Fair play, they said end of July for this and pleased to see that a two train approach is being adopted. Next the DD on the land and the funding.

As previously announced, Greenfield engaged Crosstrails, a Valkor company, to develop a FEED study for the production facilities for a 5,000 bopd oil sands project (the "Greenfield Plant"). The Greenfield Plant is currently intended to be located on a site to the west side of Vernal, Utah owned by TSH II as further detailed in the Company's announcement of 9 June 2021. The proposed plant is planned to consist of an initial 5,000 bopd train but configured for possible expansion to 10,000 bopd via a second future train.



The plant design will be configured to accept ground oil sands ore, available from the TSH II site, for loading into a closed loop process. The ore will be mixed with solvent in a continuous feed process and the sand will then be separated and dried with the vapor recovered in the backend. The liquid portion will be processed to remove the balance of solids and then the solvent will be recovered in the backend along with the other vapor. The final products of the proposed plant are designed to be sales oil, raw bitumen and a small diesel fraction, together with sand that meets the State of Utah's Department of Environmental Quality's Tier 1 Screening Levels.



The FEED study describes the design data, design requirements and general operating philosophies for the development of the plant, including a Class 3 (± 25%) cost estimate of approximately US$110 million, the detailed equipment requirements and the estimated timeline to deliver the project.



The finalised FEED study will be utilised as the basis for the EPC phase of the project and TomCo's directors believe that the completed FEED study, together with the supporting third-party technical verification report and recently completed testing operations at Petroteq's pilot oil separation plant, serve to provide a high level of confidence in both the potential economics and the technical feasibility of Greenfield's plans.



Commenting, John Potter, CEO of TomCo, said: "I am delighted the finalised FEED study has now been received, together with the associated third-party technical verification report. The FEED study outlines better economics for the proposed plant than we initially envisaged, together with verification that the proposed technical approach is appropriate.



"Greenfield's focus remains firmly on completing the requisite due diligence on TSH II and its site in Utah and progressing the necessary funding package in order to, inter alia, pursue construction of an initial 5,000 bopd facility at the earliest opportunity. These are very exciting times for TomCo as we look to realise Greenfield's significant potential."

RNS Number : 5263G
TomCo Energy PLC
27 July 2021


27 July 2021


TOMCO ENERGY PLC
("TomCo" or the "Company")

Receipt of Final FEED Study and Third-Party Technical Evaluation Report





TomCo Energy plc (AIM: TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, is pleased to announce that Greenfield Energy LLC ("Greenfield"), the Company's 50/50 joint venture with Valkor LLC ("Valkor"), has now received the finalised FEED (Front-End Engineering and Design) study for production facilities, together with the associated third-party technical verification report on the proposed process, commissioned from Crosstrails Engineering LLC ("Crosstrails") and Kahuna Ventures LLC ("Kahuna") respectively.



Highlights



· FEED study updated and finalised to reflect, inter alia, Greenfield's potential acquisition of up to 100% of the ownership and membership rights and interests in Tar Sands Holdings II LLC ("TSH II") for the potential future mining of oil sands and construction, subject to funding, of an initial commercial scale processing plant, as outlined in the Company's announcement of 9 June 2021.

· The proposed plant is planned to consist of an initial 5,000 barrels of oil per day ("bopd") train but configured for possible expansion to 10,000 bopd via a second future train, with a total capital cost for the 5,000 bopd train estimated at US$110 million.

· Subject to securing TSH II, which owns a suitable site in Uintah County, Utah, USA, and the requisite funding, the overall engineering, procurement and construction ("EPC") phases of the project are forecast to take 54-62 weeks, barring any significant supply chain issues or adverse weather conditions during construction and commissioning.

· Third-party technical verification report by Kahuna involving a site visit to Petroteq Energy Inc's ("Petroteq") pilot plant and review of operating data, process simulation data and the FEED study, supports, inter alia, indicative operating costs of approximately US$22 per barrel of oil produced for a 5,000 bopd plant operating 24 hours a day, 360 days a year, before corporate costs, SG&A costs and royalty fees. Such estimated operating costs are deemed by Kahuna to be based on valid assumptions and in line with industry norms.

· Greenfield is currently focused on completing the requisite due diligence on TSH II and its site in Utah, whilst also seeking to put in place the necessary funding package, as announced on 9 June 2021.



Further information on the FEED Study



As previously announced, Greenfield engaged Crosstrails, a Valkor company, to develop a FEED study for the production facilities for a 5,000 bopd oil sands project (the "Greenfield Plant"). The Greenfield Plant is currently intended to be located on a site to the west side of Vernal, Utah owned by TSH II as further detailed in the Company's announc

I like nice surprises..

Be surprised if it is that soon Joe given DD may take to end of September or October if they take the 10% buy in option.
Better chance of favourable finance if both FEED and DD are wrapped up positively together.
FEED schedule is end of July, not sure about update from DD.

I would have expected a bit more flesh on this. Funds raised mostly to pay off existing debts. No mention of any collaboration with Greenfield (TOM +Valkor) who are currently doing due diligence on the land sands. Perhaps they want to make it a 3 way JV sonwhy not say so?

@Soulac. Interesting. Normally a water/xylene wash does the trick. Not sure how many bbls would be recovered given oil spills that make it to the beach are very infrequent these days.

@Smithy ... funny??? Clearly you like to watch. I remember that Peter Sellers film.....
So what is your take on where we are and going? The floor is yours....

Yes Joe. One step at a time.

The mid-summer dream of 2020 is over and we are almost approaching the mid summer 2021. Freedom day on July 19 and most of the adult population have had 2 vaccinations with a booster done later in the year.
I predicted 3 quid a share a year ago and we almost got there. Unfortunately, test and trace will be a myth. Pressure of economy to open (Travel, offices, F&B etc).
The Affimers have proved their worth, but have taken too long to get to the market. Hopefully better luck with Cancer, and Sir Al needs to get a better crystal ball. So disappointing......

Joe.., that is the first time you have spelt my user name correctly. (Paid Rampers/Derampers follow the same protocol such as yourself).

You are fantastic at criticizing other people's posts yet you come up with paper thin arguments to support your own case.
I will give you one more chance to prove your legitimacy to Tom's project. It's just a simple question in three parts:

Where has GREENFIELD LLC got the funds from to support the POSP plant, How will they raise funds for the whole land and 10kbbl/d plant, how old are you?.

Vauch, you may have a point. Since July last year TOM raised £5MM through two placings. As of The recent interims they had about £1.3MM left. I 100% expect most of the £3.7MM went into Greenfield. I'm not sure Valkor have put in the same equivalent (or it would be a mega expensive FEED report). I'm sure there is a lot of discussion going on between TOM and V as to how they ensure they both chip in 50/50.

I'm not questioning the integrity of Valkor or SB.
The Greenfield/POSP was mostly funded by TOM (two share placings btw). In return Valkor provided its engineering expertise/operations/final FEED report (simply summary).
Do you really believe the full scale commercial plant and land purchase will be any different, given it has already been stated that the majority of funds will be raised by debt and the remainder by fund raise? My prerequisite statements still stand IMO.