Last checked at 28 Dec 2012 08:20
28 December 2012
TomCo Energy Plc
("TomCo" or "the Company")
Trading Update
TomCo Energy Limited (AIM: TOM), the oil shale exploration and development company focused on using innovative technology to unlock unconventional hydrocarbon resources, today announces an update in relation to its Holliday Block, Utah in the United States.
TomCo has previously indicated that it was working on providing SRK Consulting (UK) Limited ("SRK") with the required technical reports to enable the JORC compliant Resource to be upgraded to a JORC compliant Ore Reserve by the end of 2012. However, Red Leaf Resources Inc ("Red Leaf") has informed TomCo that it is currently updating all of the capital and operating costs for the EcoShale™ process, incorporating all the improvements made by the Joint Venture management team. Accordingly, after consulting SRK, the Board has agreed to defer the publication of the JORC compliant Ore Reserve in order to incorporate these updated costs. It is now envisaged that the JORC compliant Ore Reserve will be published by the end of the first quarter of 2013.
CEO Paul Rankine commented: "Earlier this year, the Company announced an upgrade of its JORC compliant Measured Resource to 126 million barrels of oil. Our operational focus since has been to de-risk the project further by upgrading the resource to a JORC compliant Ore Reserve. On a recent trip to Utah we were informed by Red Leaf and its partner Total that a study to assess the capital and operating costs for the EcoShale™ process was currently under way. It was agreed with Red Leaf and SRK that TomCo will now publish the JORC compliant Ore Reserve once Red Leaf has completed its study and any changes to the costs can be included in the revised resource statement."
Enquiries: | |
TomCo Energy Limited | |
Paul Rankine, CEO | +44 20 7766 0070 |
Numis Securities Limited | |
Nomad and Broker | |
Alastair Stratton / Oliver Cardigan (Nomad) James Black (Broker) | +44 20 7260 1000 |
Tavistock Communications | |
Financial PR & IR | |
Ed Portman/Conrad Harrington/Jos Simson | +44 20 7920 3150 |
Notes to Editors:
TomCo Energy Limited (AIM: TOM) is a London based, AIM-listed company, with substantial Oil Shale assets in Utah, USA.
TomCo holds a 100% interest in two Oil Shale leases, comprising 5 blocks covering 2,919 acres in Uintah County, Utah. Independent natural resources consultants SRK Consultants Ltd, part of the internationally recognised SRK Group, has declared a surface mineable JORC compliant Measured Resource of 126 million barrels on the main tract of TomCo's Holliday Block lease.
The Company has entered into a licence agreement with Red Leaf Resources Inc ("Red Leaf") for the use of their EcoShale™ In-Capsule Process, a proven and environmentally sensitive technology, to extract Oil from TomCo's leases.
Additionally, Red Leaf is planning a 9,800 bopd commercial operation at their Seep Ridge site, which lies about 15 miles SW of TomCo's Holliday Block lease.
Led by a highly experienced management team, TomCo's strategy is to develop the Holliday Block lease as a similar follow-on project to Seep Ridge using the EcoShale™ In-Capsule Process, with the same targeted production of 9,800 bopd.
Glossary:
bopd: barrels of oil per day
JORC Code: The mineral resource classification code devised by the Australasian Joint Ore Reserves Committee