Last checked at 9 Nov 2018 16:02
9 November 2018
TomCo Energy plc
("TomCo" or the "Company")
Update on TurboShale and the Field Test Program
TomCo Energy plc (AIM: TOM), the oil shale exploration, development and technology group focused on using innovative technology to unlock unconventional hydrocarbon resources, provides the following update on TurboShale Inc. ("TurboShale"), in which the company has an 80% interest, and its field test program which was being conducted on the Company's Holliday Block in Utah (the "Field Test").
On 18 October 2018 the Company announced a delay to the Field Test, whilst an artificial lift system was installed to address the greater than anticipated water influx into the wells as announced on12 October 2018. Having upgraded the antenna to incorporate the artificial lift system, the Company announced on 1 November 2018 that there had been an unexpected failure in one of the couplings between the RF antenna and the artificial lift system and that further work was required, including the replacement and fitting of the broken coupling.
Work commenced as planned on replacing the coupling. However, the Company was advised yesterday by the site engineering team that, in order to ensure a successful 'live' test, a more robust coupling was needed and that in order to accommodate the improved coupling, further drilling would be required to extend the existing wells.
A drilling rig is therefore required to compete the necessary drilling and TurboShale's drilling contractor, Himes Drilling Company Inc., has indicated that due to snow now being forecast at site for early next week, it will not be possible to transport a rig to the Field Test.
As a result of the above and together with the colder than expected temperatures being experienced at site which would affect the ability to complete the Field Test, the TomCo Board has today resolved to postpone the remaining part of the Field Test, including the 'live' testing stage, until early Q2 2019, or sooner if the winter ends earlier and the necessary drilling can be completed ahead of that schedule.
In the interim, the Board will undertake a review of the work completed and analysis of the data collected during the Field Test to date and will also use the time to further refine the overall process.
We will update shareholders on the timetable of the restart of the test when it is confirmed.
John Potter, TomCo's CEO commented: "Whilst this delay is obviously very disappointing for all involved with the Company, we have been able to collect a significant amount of data from the Field Test to date. We will use this time to analysis this data and to continue to refine the overall process based on the data and information gathered from the Field Test to date."
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
SVS Securities plc (Broker)
Tom Curran / Ben Tadd +44 (0)20 3700 0093
For further information, please visit www.tomcoenergy.com.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.