Last checked at 8 May 2019 07:00
8 May 2019
TOMCO ENERGY PLC
("TOMCO" OR THE "COMPANY")
Field Test Update
TomCo Energy plc (AIM: TOM), the US operating oil shale exploration and development group focused on using innovative technology to unlock unconventional hydrocarbon resources, provides the following update regarding the test wells that have now been drilled ahead of the field test programme to be undertaken at the Company's Holliday A Block in Utah (the "Field Test").
The three test wells have now been drilled ("Monitor Wells") to identify the optimum location for the Field Test wells. The Monitor Wells have been drilled at a site atop a ridge within 50 metres of an existing core hole, which was drilled in 2010 to a depth of 215 feet and in which no groundwater was encountered.
The Monitor Wells have been drilled to depths of 180ft (MW1), 130ft (MW2) and 100ft (MW3) respectively, with MW1 being drilled through, MW2 being drilled into and MW3 being drilled above the Mahogany oil shale zone from which the Company will seek to recover oil as part of the Field Test. The Mahogany zone sits at a depth from surface of between 100ft and 170ft at the location of the Monitor Wells.
Initial indications show that minor amounts of localised perched water (a body of water that sits above the water table) were encountered above the Mahogany zone at a depth of around 67ft in MW2 and MW3, with low inflow rates (
TomCo, with its consultant IGES Inc. ("IGES"), will continue to monitor the water levels within the Monitor Wells over the next few weeks. Snow fall during the winter months across the Uinta Basin has been double normal levels, which is expected to have increased groundwater and recharge rates. Currently, static water within the Monitor Wells is at depths of approximately 169ft (MW1) and 64ft (MW3), while MW2 is essentially 'dry'.
The Field Test well design includes casing to approximately 100ft, being just above the target Mahogany zone which the Board and its technical team believes will address the influx of perched water from above to ensure that the RF antennae are in a 'dry' environment within the Mahogany zone to enable the Field Test to proceed. As a result, the Board is pleased to confirm that it is moving ahead with the Field Test as planned.
With the long lead items for the Field Test having already been ordered and subject to there being no delay in the permit process for the three new wells required to undertake the Field Test, site preparation work is expected to commence around the middle of June 2019, with mobilisation of the Field Test team to the site in early July. The Field Test is expected to commence shortly thereafter, with the Board anticipating the recovery of oil within three weeks of its commencement. The Company will keep shareholders updated on progress.
As previously stated, the Company's primary objective for the Field Test is the recovery of oil from the Company's Holliday A Block through the application of TurboShale Inc.'s ("TurboShale") RF technology. The Company has an 80% interest in TurboShale.
John Potter, CEO commented: "Whilst water has been encountered in the Monitor Wells, the results suggests that this is primarily located above the target Mahogany zone. The wells designs for the Field Test already include casing, and accordingly we believe that the presence of water should not be an issue.
Together with the improvements identified from the test work completed in 2018, I am very confident that our goals of recovering oil and then developing significant production data, are going to be achieved this summer and I look forward to keeping shareholders updated as the Field Test progresses."
Dan Seely of IGES commented: "Localised perched water intervals are common within the Green River formation stratigraphy of the Uinta Basin, which hosts the Company's Holliday A Block. Experience in the area indicates the localised intervals are laterally discontinuous with very low recharge rates and are easily drawn down."
Enquiries:
TomCo Energy plc
Andrew Jones (Chairman) / John Potter (CEO) +44 (0)20 3823 3635
Strand Hanson Limited (Nominated Adviser)
James Harris / Richard Tulloch / James Dance +44 (0)20 7409 3494
Turner Pope (Broker)
Andy Thacker +44 (0)20 3621 4120
For further information, please visit www.tomcoenergy.com.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.