Tomco Energy Regulatory News (TOM)

28 Sep 2007 07:04

TomCo Energy PLC28 September 2007 TomCo Energy plc ("TomCo" or the "Company") Operations update TomCo is pleased to provide an update on its operations and production, coveringthe period from 1 April 2007 to 30 June 2007. On the Abel and Saratoga Leases in South Eastern Texas, the Company has a 50 percent. interest in nine oil wells operated by Mark III Energy Inc.. Eight wellswere on production during the period, at an aggregate rate of around 20 barrelsof oil per day ("bpd"). The operator plans to drill a number of additionallocations on these leases in order to increase production from this level. Also in Texas, the Flusche well (in which the Company has a 40 per cent.interest) produced oil at a reduced rate of about 6 bpd during June 2007, asignificant decline from the initial 28 bpd previously reported. Plans to drilltwo offset producers have therefore been shelved for the time being. The Rock Crossing well in Willbarger County, Texas (in which the Company has a30 per cent. interest), drilled in April of this year, was also put onproduction in June, and by August 2007 gross production had stabilised at 8 to 9bpd. Additional offset locations are being considered for future drilling. Exploration drilling at Picket County, Tennessee (JELP III), Lane County, Kansasand Lea County, New Mexico has not been successful, and the Company's interestin these leases has been dropped. Drilling is underway on the Boone A #2 well,in Scurry County, Texas, where the Company has a 2 per cent. working interest. TomCo's total net production during the period was 873 barrels, and by 30 June2007 was averaging around 16 bpd. Howard Crosby, TomCo's CEO, commented: "While exploration drilling results in Tennessee, Kansas and New Mexico havebeen disappointing, we are encouraged by our early production results at a timeof very strong oil prices. Strong relationships have been forged with ouroperators and others, which augur well for the future. Talks are in progress ina number of areas, which we anticipate will result in new financing andinvestment opportunities for the Company." Contacts: TomCo Energy Plc +44 (0)20 7808 4857Stephen Komlosy Strand Partners Limited +44 (0)20 7409 3494Warren PearceThomas Lockyer This information is provided by RNS The company news service from the London Stock Exchange