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MMs are seriously short of sellers now. We could move fast from here with just a little good news IMO.

Come on Tommy, tell us the new JV company is formed !

Part 2

So, up pop, Valkor and Tomco, with a new debt free JV Company, and Tomco with its AIM Listing and Debt Free. Valkor have the right to take a licence which IMO will not cost $2m. At this stage I think they will get it for a lot less with Petroteq in its current position. Or maybe it will still be $2m, but certainly not 'up front' It would be spread based on production imp.

So now you have a debt free company, with the backing of Valkor and the potential that comes with a London listing ready to step in and make all the money. It is a sad but true way with business that this happens a lot.

Another reason is that they are now invested in Tomco, the 2 new major shareholders are clearly connected to Valkor/Petroteq/Steve Byle. They have put in £100k each at .65p and the new director Stephen West has been placed on the board by the new major holders also holds a decent number of shares in the company.

So, with all the fantastic potential why is the Tomco Market cap still only £1.4m?

Well, sadly that is down to history. They have had leases in Utah for many years and have never produced. They have always refused to look at anything else (aside from the strange Palm Oil debacle that never went anywhere). They had the Red Leaf Resources Ecoshale opportunity that will never get off the ground in Utah, there are far too many obstacles to overcome for that to be possible anytime soon.

Plus, they have raised funds last year under the old BOD at continually lowering prices. It just did not build confidence, continual dilution, lower prices, each RNS released destroyed the SP but ultimately it was the failure of the RF test that did the damage which Tomco was never going to recover from without a new injection of new projects and new Board members.

Now Tomco has a new opportunity and for the first time ever with a proven method which is already in production in Utah on the same type of lands that the New JV will secure and that Tomco already has. They also have the backing/partnership of the very company that has designed most of the Petroteq plant which is on production.

In My Opinion.... ETC.

PART ONE.
This year imo will see Tomco either trading at 5p+ again when the JV is confirmed (at 50/50) or will be taken out by either Valkor or the NEW JV company will reverse into the TOM listing giving Valkor a majority holding of Tomco and therefore controlling interest in the London Listing.

WHY?

Well, Valkor could have gone it alone without any involvement in Tomco. They said at the start of the Non-Binding JV talks that the potential new JV company would build a plant on the leases held by Tomco in Utah, however in the latest RNS (19th March) it states they have now entered Exclusivity Agreement are looking at an area which is not on Tomco's leases, so why still move forward with Tomco? The answer is that Tomco have the London listing and they have their own leases which will come into play later.

They also have the Turboshale tech and equipment which Valkor have already stated they are interested in using on their oil production leases in Trinidad with their oil company trinidadoil.com and the potential of the oil shale project which will unlock billions of barrels once they get the tech right.

For now, IMO this is what is happening (aside from the travel lockdown). The new JV will be set up, the New JV company will secure the new leases with better oil sands locations. Then the new JV company will secure the licence with Petroteq for use of their plant tech. The New JV will reverse into the Tomco listing giving them a Listed company with hundreds of millions of barrels of proven oil to produce. At this point the SP will be in the 5p+ region (possibly a lot higher, do your own numbers based on just 500m barrels, a proven production method, and a current £1.4m market cap).

Why don’t Valkor just take over Petroteq instead?

Well it seems pretty obvious Petroteq are in difficulty right now. They are the company that have spent all the Millions of $$$ on getting the plant to work, all the testing, trials, failures, successes etc. It has left them in deep trouble by literally having to still raise a few hundred thousand dollars just last week to keep the lights on.

L2 now 4v1, could be be about to be let loose !?

2.6m buys v 600k sells now. Still cant go blue!

Level 2 has gone 2v1, could we go blue soon?

Maybe not, but for anyone buying in now it would be good. Personally I see 2p as a very low target. It will get there just on the JV company being formed and the JV going ahead. IMO by production time it will be a lot higher than that.

ticked up as i typed ! about time!

1.95m buys v 600k sells and down ?

very little buying needed now to move this. Must be running out of sellers now.

A few things to consider about the new JV. It is currently stated the new company will be 50/50 between Tomco and Valkor. However some have said it will end up with less to Tomco. So I did some basic figures.

I am basing these on 1 10,000 bopd plant being built and the oil price at the time being $45 with a premium of $5 for low sulphure oil. So $50 per barrel.

Also I am going off the current cost to produce using this method of $30 per barrel (fully inclusive of all costs/royalties etc). This IMO will be lower with the bigger plant.

This leaves $20 per barrel profit.

Valkor 90% - Tomco 10% = 1,000 bopd for Tomco = $20,000 per day or $7.3m per yr profit for TOM (approx £6m). Current market cap £1.5m.

I really needn't go any further as just a 10% stake is massive for Tom but going to the other end of the scale , i.e 50/50.

5,000 bopd at $20 profit = $100,000 per day proifit or $36,500,000 profit for Tom.

Even if the doomsayers are correct and Tom end up with 10% it is massive as they will be building more than 1 plant imo.

This then gives them the cash to finalise Turboshale where they own 80%.

The trigger here is the news that a site is found and they JV company is formed. This is when we will know the final split.

Boefore the doommongers start. Even if you half the profit to $10 per barrel and stick with just the 10% for tomco the annual profit of £3m is double the current market cap.

This is why tomco at this level is a no brainer and will multibag once the travel ban is over and work gets back on track.. IMO.

What rubbish, they have cash for 12 months and will only need to raise if they are going to produce commercial quantities of oil!

This is a new Tomco. And in partnership with a very big company in Valkor.

Results out, enough cash until end March 2021, so that puts an end to all the nonsense about placing etc.

Excellent.

Money only required when they go commercial which is obvious. I would expect the sp to be very much higher by then with regular ‘positive updates’

petroteq 75% up so far today, something brewing?

We are down as the world has gone mad. It will sort itself out. I will keep buying at this level.

nice £22,000 buy at 0.5 there. Someone just bought 1.5% of the total in issue !

KiaSharp, no placing required they have to spend just over £100k, they have £900k. This is a company making rns. It is just a shame the markets are in panic mode otherwise we would have gone well over apenny with that news.

and 50/50 whaich is fantastic.

Ok thanks, so it seems the way forward for Valkor is with Tomco then, producing on Tomco leases.

Is it possible Tom and Petroteq will merge making a single company with a dual listing in UK and Canada? This could be very good as they both have great leases in Utah.

Tomco current market cap is crazy at @£1.5m which has been hammered for various reasons, test issues, corona, poor investor communication etc.

It seems the tide is now is due to start turning and we could see a very nice recovery once the new Chairman reveals the plan going forward.