TomCo Energy PLC Update on Permits and Timing (1709E)
February 05 2015 - 6:49AM
UK Regulatory
TIDMTOM
RNS Number : 1709E
TomCo Energy PLC
05 February 2015
5 February 2015
TomCo Energy plc
("TomCo" or the "Company")
Update on Permits and Timing
TomCo Energy plc (AIM: TOM), the oil shale exploration and
development company focused on using innovative technology to
unlock unconventional hydrocarbon resources, is pleased to provide
the following update.
Permitting
The Utah Division of Water Quality ("DWQ") has informed the
Company that following the end of the public consultation period on
its Ground Water Discharge Permit ("GWDP") and Construction Permit
("CP"), the only objection was lodged by Living Rivers. DWQ, with
TomCo's assistance, is currently in the process of drafting a
response to Living Rivers objection.
Timing for development
Further to the announcement of 3 February 2015, the Company's
technology provider Red Leaf Resources Inc. ("Red Leaf") has
released an update as to the timing of construction for its Early
Production System ("EPS") capsule, with the full press release
reproduced below.
"Given global speculation about conventional oil markets and
Utah's strong interest in unconventional oil resources, oil-shale
development company Red Leaf Resources issued the following
statement today regarding the timeline of its commercial
demonstration project:
-- Red Leaf is not yet in commercial production. Our large scale
demonstration project is under construction and will continue
despite current oil prices. We have designed a deliberately slow
and careful construction process for this first capsule which,
coincidentally, will give oil prices time to recover before we
begin full commercial production.
-- Red Leaf recently approved the work plan and schedule for the
next phase of capsule construction with Ames Construction. As part
of the new work plan, and in part due to current market forces, Red
Leaf will push back the target date for completion of capsule
construction and applying first heat until the second half of
2016.
-- Generally speaking, we believe that oil prices will continue
to be cyclical, as they have always been. Cyclical troughs, like
the one we are in now, serve to both stimulate demand and restrict
new investment in incremental production. Over time these factors
lead to new cyclical highs. We believe that weak prices now will
increase the odds that we bring our continuous commercial
production online in a strong oil price environment.
-- Red Leaf has made strategic asset acquisitions in recent
weeks and will continue to look for good opportunities in today's
depressed market. We remain confident in our technology and are
pleased with the progress made so far on the commercial
demonstration project."
TomCo will only progress with commercial-scale construction on
its Holliday Block at such time as the results of Red Leaf's nearby
EPS capsule are available.
Enquiries:
For further information, please visit www.tomcoenergy.uk.comor
contact:
TomCo Energy plc Tel: +44 20 7917
6822
Paul Rankine, CEO / Miikka Haromo, CFO
Shore Capital (Nomad & Broker) Tel: +44 20 7408
4090
Nominated Adviser
Pascal Keane / Edward Mansfield
Corporate Broking
Jerry Keen
Tavistock Communications (Financial PR Tel: +44 20 7920
& IR) 3150
Ed Portman / Jos Simson
Notes to Editors:
TomCo Energy plc (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
TomCo's 1,186 acre Holliday Block lease.
The Company has entered into a licence agreement with Red Leaf
Resources Inc ("Red Leaf") for the use of their EcoShale(TM)
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(TM) 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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