Last checked at 27 Jan 2009 07:00
TomCo Energy Plc
("TomCo" or the "Company")
Strategic Review
The Board of TomCo announces that it has recently undertaken a strategic review of its business.
The Company's Admission Document dated 22 December 2006, prepared in connection with, inter alia, the acquisition of leases over approximately 2,918 acres of oil shale in the Uinta Basin in the state of Utah, USA ("Oil Shale Leases"), set out its corporate strategy which was to hold the Oil Shale Leases as a long term investment which was to be exploited when market conditions made it commercially viable. In addition, the Company intended to pursue the acquisition and development of conventional producing and development oil wells in the US.
Whilst the energy sectors' interest in US oil shale has increased exponentially since the Company's admission to AIM in January 2007, the US oil shale industry remains at an early stage of its development. On this basis, TomCo intends to maintain its strategy of holding the Oil Shale Leases as a long term investment.
The rally in world oil prices, which commenced soon after the Company's admission to AIM, meant that there were few commercially viable opportunities for TomCo to acquire and develop conventional producing and development oil wells in the US. Consequently the Company expanded the regions in which it would review potential opportunities and, in March 2008, identified an opportunity to acquire the Heletz fields in Southern Israel and has brought these assets back to production with a full development plan in place.
With the dramatic fall in world oil prices over recent months, the Company believes there are once again opportunities to acquire producing assets and reserves in the US and intends to pursue this strategy; at the same time maintaining its commitment to the Heletz development plan and continuing to seek investment opportunities globally. The Company is actively seeking such investment and acquisition targets whilst also considering other strategic options for the Company with a view to delivering an enhancement in shareholder value.
Glossary:
| Kerogen - | the fossilised organic matter found in shale and other sedimentary rock formed during the deposition of sediments. Upon heating, it breaks down into recoverable gaseous and liquid substances including oil.
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| Oil shale - | a fine grained sedimentary rock that contains Kerogen. |
Enquiries:
| TomCo Energy plc Howard Crosby Stephen Komlosy | +44 (0)20 7766 0078 |
| Strand Partners Limited Simon Raggett David Altberg | +44 (0)20 7409 3494 |
Notes:
TomCo is an AIM listed company which has investments in conventional oil production in the United States and Israel. The Company also owns leases on approximately 3,000 acres of shale oil holdings in Utah, estimated by SRK (an independent firm of mining consultants) to contain some 230 million barrels of oil.
Further information on TomCo is available at www.tomcoenergy.com.