AIM-listed TomCo Energy Plc (LON:TOM) has told investors that it will turn its focus to its shale oil assets in Utah after it was unable to secure the necessary financing for its proposed Makarie palm oil project in Sierra Leone.
TomCo has decided to suspend the project while it takes stock of its options, although it will continue to assess the feasibility of raising the required capital.
The company had been hopeful of securing the finance as recently as last month.
TomCo also reminded investors that the company has only incurred minimal costs from Makarie so far, with no payments made or due in respect of the boiler unit.
It will now focus all of its resources on its oil shale assets in Utah and is “actively investigating” potential alternative lower cost and scalable technologies which be applied to such operations.
In Tuesday’s stock exchange announcement, the firm added that it currently has cash reserves of £285,000.
Shares were down 14% to 0.08p.