Last checked at 29 Jan 2019 07:00
29 January 2019
TOMCO ENERGY PLC
(AIM: TOM) ("TOMCO" OR THE "COMPANY")
TurboShale Update on Field Test and Patent Granted
TomCo Energy plc, the US operating oil shale exploration and development group focused on using innovative technology to unlock unconventional hydrocarbon resources, is pleased to provide an update on the Company's operations in Utah.
Through its operating subsidiary TurboShale Inc. ("TurboShale"), in which the Company has an 80% interest, the Company has begun work to commence the 2019 field test programme at the Company's Holliday Block in Utah (the "Field Test") as it seeks to achieve first oil through the application of TurboShale's RF technology.
TurboShale has also received confirmation from the US Patent Office that the second patent, acquired pursuant to the framework agreement with JR Technologies, LLC ("JRT") (TomCo's 20% partner in TurboShale), has now been granted.
Field Test Update
The Company's primary objective for the 2019 Field Test programme is the production of first oil from the Company's Holliday Block through the application of TurboShale's RF technology.
The Company has commenced work to identify a suitable site for the 2019 Field Test, following which it will first seek to test drill into the upper mahogany zone of the shale, which is near surface and the zone within which the BART test was previously undertaken. The BART test was undertaken in the early 1980's using the RF technology now held by TurboShale at a site in the same Uintah Basin as TomCo's Holliday Block. Subject to funding, the Company will then drill further wells and install two RF antennas at a 3 metre separation to undertake the test, as it seeks to recover oil from the Company's Holliday Block using TurboShale's RF technology. Subject to a successful test, the Board expects that initial production will be 5 to 10 barrels of oil at this stage of the programme.
Site selection will be based on desktop analysis work undertaken by the Company's new technical advisory team, to develop a greater understanding of the water sources encountered during the initial phase of the Field Test. The Company is seeking to identify sites that will not encounter water at the test depths of up to 200 feet (approximately 60 metres) and therefore allow the test to be undertaken in a 'dry' environment. The site will also be chosen on its ability to expand the programme into a pre-commercial test.
The relevant permits required to allow the work to commence have been applied for and the survey team of IGES and Himes Drilling will commence the work on site once the permits have been approved.
Development of next stage RF technology
Other work undertaken since the team left site in November 2018, has also included a review of the RF transmitter design with Continental Electronics, the manufacturers of the transmitters, to help the antenna deliver the RF energy when water is present.
An upgrade to the design has also been identified during the review that will allow the RF frequency to be varied without the need to recover the antenna from the well, providing greater flexibility for the 2019 Field Test. The revision will be made to the existing transmitters once the results of the test wells have been received and analysed.
We look forward to keeping shareholders updated on our progress and the continuing design review that is developing the financial model for the pre-commercial programme.
Patent Granted
A patent has been secured by TurboShale in respect of its RF technology. Originally filed in 2015 by Ray Kasevich and Jeb Rong, the patent was assigned to TurboShale in 2017 as part of the framework agreement with JRT. The patent in general, deals with the colocation of high power antennas and radar to better identify the heating effects of the high power antenna. Further development of the process explained in the patent will be carried out as the Company expands its field operations.
John Potter, CEO commented: "We have two key strands of work ongoing at present with our primary objective being to test the application of TurboShale's RF technology on our Holliday Block to achieve first oil. TomCo will, subject to a successful test, then seek to scale operations into the pre-production phase. The enhanced technical team has done excellent work on seeking to identifying a suitable site for the test and we look forward to providing further updates in this regard.
I am also excited about the second string of our work currently on going, as we seek to develop the next phase of RF technology to deal with direct water contact. The Board believes this should be solved with adaption of current technologies and processes and is part of TomCo's strategy to build value from having the technology and experience to deliver strategic, commercial oil production within the US."
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.uk.com
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.