Rns8 Sep 2021 08:08
RNS Number : 0426L
TomCo Energy PLC
08 September 2021
8 September 2021
TOMCO ENERGY PLC
("TomCo" or the "Company")
AGM Statement
TomCo Energy plc (AIM: TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, announces that at the Company's Annual General Meeting ("AGM"), being held later today, TomCo's Non-Executive Chairman, Malcolm Groat, will make the following statement:
"These are exciting times for TomCo and I am particularly pleased with the considerable progress that has been made in recent months with our focus on Greenfield Energy LLC ("Greenfield") and its plans to pursue the construction of an initial 5,000 barrels of oil per day ("bopd") production facility at the earliest opportunity.
"On 9 June 2021, we announced Greenfield's potential acquisition of up to 100% of the ownership and membership rights and interests in Tar Sands Holdings II LLC ("TSHII") (the "Membership Interests"), (the "Agreement"). Greenfield has now paid a total non-refundable deposit of US$300,000 to secure an exclusive option to acquire an initial 10% of the Membership Interests for US$2 million, payable on or before 1 October 2021. The deposit of US$300,000 can be credited against the US$2 million cost of acquiring 10% of the Membership Interests. Assuming a successful completion of the acquisition of the initial 10%, Greenfield will then have an exclusive option, at its sole discretion, to acquire the remaining 90% of the Membership Interests for additional cash consideration up to 31 December 2022, as detailed in the 9 June 2021 announcement.
"TSHII owns approximately 760 acres of land and certain non-producing assets (the "Site") in Uintah County, Utah, USA. Subject to securing the requisite funding and the completion of satisfactory due diligence, Greenfield plans to use the Site, if ultimately acquired via TSHII, for the potential future mining of oil sands and construction of a commercial scale processing plant. The Site has existing infrastructure, plant and equipment, together with an existing Large Mine Permit No. M0470032, that could facilitate 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. Whilst there can be no certainty that the due diligence exercise will be satisfactorily concluded or that Greenfield can secure the required funding to complete the acquisition of 100% of the Membership Interests, I remain optimistic, based on discussions to date, that the process can be completed and the required funding secured.
"Just over two months ago, on 2 July 2021 we announced that Greenfield had successfully completed all of its planne
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