Last checked at 14 Jun 2021 07:00
14 June 2021
TOMCO ENERGY PLC
("TomCo" or the "Company")
Greenfield Update
TomCo Energy plc (AIM: TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, is pleased to provide a further update in respect of the work being undertaken by Greenfield Energy LLC ("Greenfield"), the Company's 50/50 joint venture with Valkor LLC ("Valkor"), with respect to Petroteq Energy Inc's ("Petroteq") existing oil sands plant at Asphalt Ridge, Utah (the "POSP").
Further to the lifting of the Cessation Order on 25 May 2021 and resumption of operations at the POSP, the rate of production has been increasing and has now reached the equivalent of 180 barrels of oil a day. It remains Greenfield's expectation that it will shortly reach the targeted production level of 250 barrels of oil per day, aided by the intention to process ore with an expected higher concentration of oil, mined from the Tar Sands II site, which is subject to the membership interest purchase agreement announced on 9 June 2021. Further shipments of oil are anticipated in due course at similar prices to the first shipment, being circa US$55 per barrel, with any change in price reflective of the prevailing oil price at the time of shipment.
A sample of produced oil is also being prepared to be shipped to Quadrise Fuels International plc in the UK, for the purpose of assessing the suitability of the heavy sweet oil produced by the POSP for their emulsion process. It is expected that this sample will leave the US before the end of June 2021, with testing taking place over the coming months.
Additionally, as previously announced, Greenfield and Petroteq are working with a local specialist firm to identify potential customers for the processed sand. The firm has, to date, taken an initial 40 tonnes and it is anticipated that they will take the further circa 700 tonnes of processed sand currently available, together with further sand as it is produced, over the coming weeks. The proceeds from the sale of sand are approximately US$15-20 per tonne.
Further updates will be made as operations progress.
Enquiries:
TomCo Energy plc
Malcolm Groat (Chairman) / John Potter (CEO) +44 (0)20 3823 3635
Strand Hanson Limited (Nominated Adviser)
James Harris / Matthew Chandler +44 (0)20 7409 3494
Novum Securities Limited (Broker)
Jon Belliss / Colin Rowbury +44 (0)20 7399 9402
IFC Advisory Limited (Financial PR)
Tim Metcalfe / Graham Herring +44 (0)20 3934 6630
For further information, please visit www.tomcoenergy.com.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.