Member Info for OandGeo

Crownos, then why aren't shareholders collectively lobbying for Tomco board to take the joint venture option?

You're right that Tomco is running on fumes. If it's true that since Dec 2023 there's been a JV option on the table to inject financing into the company in exchange for equity - it'd be near criminal for management not to take that option immediately.

As an american I've come to learn the most British thing ever is an AIM penny stock board being sidetracked to discuss Hargreave Lansdown, lol

Thanks StockCheque, here's some more:

pg 8 Overview from Lafayette's recent filing is one of the most recent updates on the 2 HSO wells drilled last year

https://www.sec.gov/Archives/edgar/data/1936031/000165495425000736/lafa_s1.htm

They've had downhole heater issues it sounds like are resolved...HSO 2-4 to have water pumped out and resume production by end of Feb, and HSO 8-4 to have replacement heater installed to resume production by mid Feb.

In a his recent LinkedIn post, Quadrise CEO Jason Miles stated 4 days ago that both well are in active production.

The AC-4D well permit is now approved. AC Oil applied for this well back in September of 2022. There are 6 more AC well permits in queue for approval. It's hard to tell but it looks like the AC-4D well may be the central well in a proposed hexagon cluster. It would be lovely to see oil coming out of the ground for Tomco!

That was to DustofNations, my bad.

StockCheque, not sure about Valkor mining. They'll 100% be the designers and optimizers of the facility, but if they decide they want to mine solely themselves on a project, that would be a significant shift in their mentality

It might be that StockCheque...I was reading it as sort of a 'new developments' update and that's 7 months old I think but that just might be it. I'm sure they'll get approval eventually, I just wish I knew more about that project.

Today marks 15 days after the Jan 15 press release where Valkor's Steve Byle said, "We have received additional drilling approval from the state of Utah, we are expanding our drilling program, and we are engineering our first mined oil sands plant after successfully securing project finance. During 2025 we are planning to increase oil production through the drilling of additional wells and bringing our first mined oil sands plant online."

12 wells were submitted for permit approval in December; 6 for Heavy Sweet Oil and 6 for AC Oil (Tomco). None of these permits have been approved yet per the Utah Department of Oil, Gas, and Minerals website (link below).

https://oilgas.ogm.utah.gov/oilgasweb/live-data-search/lds-well/well-apd-aprvd-lu.xhtml

The wellsites also require a pre-site inspection before drilling commences; this is logged by the state (link below). AC Oil's 6 sites pending permit approval have been inspected (on Dec 6, two days after permit requests were filed), but Heavy Sweet Oil's 6 sites have not received pre-site inspection.

https://oilgas.ogm.utah.gov/oilgasweb/live-data-search/lds-inspections/inspections-lu.xhtml

Also mentioned in RNS is funding for mining, and a plant that will be done in 2025. This will be great for Quadrise! But who is mining? Valkor mining facility proposals in the past have been for 10,000 bpd output, cost ~$130m, and take roughly a year to build. When are they going to start construction? Or will the bone structure from existing facility on the TSII lease going to be used? Valkor in the past has expressed interest in Engineering partnerships with other operations entities on the ground - they haven't expressed interest in operations themselves, Heavy Sweet Oil has only expressed interest in drilling...so, who will Valkor be helping with a mining facility?

Pretty ballsy RNS from Quadrise if permits aren't actually approved yet...

I want to believe. #MakeMeBelieveSteve

I like it!

Who is mining?!

Why are all 12 HSO & AC Oil permits still in an unapproved state on the DOGM site?

https://oilgas.ogm.utah.gov/oilgasweb/live-data-search/lds-well/well-apd-aprvd-lu.xhtml

They owe Valkor $1m still...that's debt, not an ownership dispute - unless there's more to know?

I don't know anything the public doesn't, but if Tomco succeeds then Valkor gets its $1m back and makes continuous money as the project moves along. If Tomco fails Valkor doesn't get anything. If Valkor takes Greenfield then it owns an operations company, which isn't their goal... I'm an optimistic perspective if you can't tell.

I do wish they'd update the public already. I'm starting to wonder if the Quadrise RNS last week was premature or out of context. None of the HSO or AC Oil well permits have been approved like was stated in the RNS, half of the wells with permits applied haven't even had pre-site inspections yet.

On the production end, they're sort of inadvertently doing their best to make it sound like there are production problems. 3 back to back heater failures push meaningful production back by 4 months, then the issue is supposedly resolved - these guys are just silent though... Operators usually scramble to get new production numbers out so perception won't be tainted. Makes you wonder if there's more complications than they're letting on. They're also becoming exposed to a harsh learning curve in oilfield vendor management with those heaters. Would love more details there.

I’m not aware of any ownership issues with Greenfield. At one point Valkor was going to buy an equity stake in Greenfield, but plans changed and they didn’t. This was around the time Viston abandoned PQE tender I think.

Is this what you’re referring to? Share article if you can!

Agree 100% Tomco involvement hasn’t been confirmed.

Valkor hasn’t expressed any interested in becoming an operations branch themselves, but like you say it’s not out of question they don’t have someone else set up.

Valkor collaboration has probably been frustrated by Tomco inability to fund, but their collaboration isn’t ancient. 2019 FEED study on PQE site was Tomco/Valkor, but much more recently you’ll remember Potter sitting in DOGM meetings with Byle, Denise Dragoo when fighting Hoodoo over TSII lease. Valkor was aiding HSO and AC Oil both in that case.

But, yes we don’t know if Tomco’s involved, just that they’re the only ‘alive’ company Valkor has worked with on mining, to public knowledge…

Personally I think if Tom were included they would be in with a partner. I’d really welcome Tom to sell their majority stake in Greenfield to a partner in exchange for cash injection like they discussed in Jan 2024 and previous.

Love the conversation here

If you pop over to Tomco’s homepage you’ll see that Tomco wholly owns Greenfield, mining. Tomco also owns AC Oil, drilling.

Again, I just don’t think the public understands that when Quadrise just RNS’d Valkor funding for a mining plant this year - Greenfield is the only active entity Valkor have worked with on mining.

How should the market react to a $3m market cap company receiving funding for one of these plants to be complete in under 12 months?

They don’t have to be the sole owners for it to 30x from today’s SP.

Why isn’t anyone talking about this?

Comment here if you have thoughts or disagree, I just don't see the enthusiasm here I'd expect from hearing that Valkor has cleared funding for more wells AND A MINING FACILITY IN 2025.

-- if Tomco doesn't receive a dime of help with this funding package, they still benefit greatly because any progress in the area will help with their ability to get funding

-- on the subject of the mining facility in general, remember Tomco's Greenfield and Valkor were on site for the 2019 FEED study proving the tar sands mining concept. If there is a mining facility to be online this year, it's likely located on TSII using portions of the old facility on the property, and it's extremely likely that Tomco will be involved somehow. This is the best news for Tomco since the day the FEED study released.

Re: Valkor, Lafayette, Tomco, Trio, etc. My belief is that now one of these has completed it's funding, the others will quickly follow suit.

Remember, Valkor isn't drilling or mining - they're engineering and infrastructure. It hasn't been disclosed yet how the funding is to be used but we can be sure that Quadrise isn't referring to 'Valkor's funding' but rather 'the funding Valkor secured for the Utah project.'

Drilling: From the Quadrise press release, there will indeed be more drilling in the short term. Heavy Sweet Oil and Tomco's AC Oil are the companies drilling - so it sounds like one of them at least benefits from this Valkor-orchestrated loan. Trio and Lafayette both own equity stakes in the Heavy Sweet Oil drilling project, although it sounds like Lafayette might be involved more extensively soon. So for drilling, I'm betting Heavy Sweet Oil is receiving part of this funding, although it's not impossible AC Oil will. Either way, if HSO benefits then Trio and Lafayette benefit.

Mining: The only mining entity in the area I'm aware of is Tomco's Greenfield. If Quadrise RNS quotes Byle correctly saying 'mining facility to come online in 2025, I imagine Greenfield is involved. Petroteq is delisted and untrusted, Ecoteq is defunct, Big Sky is no more, Exodus Energy is sort of interested but behind a curtain still.

Other: Tomco doesn't have much momentum with no ownership in Tar Sands II. Integrated Rail & Resources is a SPAC set up to merge with Tar Sands II Holdings Inc. They've agreed to continue Tomco's lease on the TSII property. Does Integrated Rail/TSII Holdings buy Tomco? Or does Tomco sell equity stake to them?

HSO and Tomco collaborated with Valkor to lobby the state of Utah to add clarification around production of heavy oil. Both were/are being aided by Valkor. There may still be plans for HSO to use facilities on the TSII lease, but at the time of the below agreement, Tomco owned 10% of the TSII lease with intent to purchase the rest of it. They've since sold that 10% and seem to have retained the lease, but if HSO is wanting to use the land now, you'd think they'd be dealing directly with Tar Sands II Holdings Inc (and possibly Integrated Rail & Resources, who want to SPAC into TSII Holdings Inc)

All those in support say aye!

Regarding Tomco funding, no news has historically been bad news. As noted on this board, this is a much smaller chunk. Why are we looking for the perfect loan? If we're confident in the concept, a $10m loan will be followed by a $100m loan. Let's take our time and find the perfect large loan. Tomco doesn't have infinite time to get on its feet. Find some private equity for the first loan and get it over with if needed.

If that's not the holdup, what is?

AC Oil applied for 6 permits on 11/27/24, these are a newer well design than the previous two wells drilled by HSO. Pre-site inspections were conducted on 12/6/24 for all 6 wells.

HSO applied for 6 permits on 12/4/24 using the same well design very nearby. No jobsite inspections have been completed for these according to Utah DOGM.

Several communications in H2 2024 from Quadrise, Trio, and I think Tomco and Lafayette as well indicated both funding and drilling of '6 wells' (unclear which 6?) would begin drilling by end 2024.

I'm still optimistic, but what's the holdup? An update would help...

2nd complete HSO well should have received a heater 'early Dec.' What's the update on that? Downhole heaters have been breaking left and right; has this been resolved?

Let's hope they've dumped the heater manufacturer with 4 back to back failures. If heaters have high failure rate they need to have a backup on every jobsite to avoid unnecessary delays here at the start of the project. If not needed, they can go to use on upcoming wells. Sitting here 4 months with less that 200 barrels produced and weeks worth of unnecessary downtime is painful. It looks like they're experimenting with an updated well design for the newly proposed wells, and that's great but there's no room to lose momentum just as operations begin.