Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

TomCo Energy to reboot oil shale venture with launch of TurboShale unit

“This is an extremely exciting time for TomCo and our new subsidiary TurboShale,” said Chris Brown, Tomco chief executive.
oil barrels in stack
TurboShale will initially raise US$1.5mln

TomCo Energy Plc (LON:TOM) has unveiled new strategic plans that aim to reboot its oil shale project in Utah.

The substantial Holliday block oil resource was previously set for a ‘me too’ development, with technology being licensed from Red Leaf Resources – a firm that was pursuing a proof-of-concept project alongside Total - but that project stalled amid lower oil prices and rising development costs.

Since then, however, Tomco has been working to identify other viable means of recovering the oil contained within the shales in the Holliday block.

It has now announced plans to launch a new business unit, to be called TurboShale Inc, which aims to develop and commercialise new recovery technologies.

Extraction technologies involving methods like radio frequency heating, oxidation, high-voltage fracturing, and oil upgrading will be explored.

TurboShale will be led by an executive team including Ray Kasevich and Jeb Rong of Massachusetts-based JR Technologies, as well as Graeme Hossie of UK-based Venture Development Partners.

Tomco explained that a letter of intent setting out principal terms has now been signed with JR Technologies and VDP, and it is expected that a final framework deal with be in place soon.

“This is an extremely exciting time for TomCo and our new subsidiary TurboShale,” said Chris Brown, Tomco chief executive.

“We believe we have found a collection of technologies that can be competitive at current oil prices and address the problems of producing shale oil from kerogen.”

TurboShale is launching a funding to support the new initiatives, with a Series A equity placing set to raise US$1.5mln which would potentially followed by a further funding round in a year’s time after a phase of lab testing.

Tomco expects to retain 40% of TurboShale after the initial phase of funding.

Brown added: “While we continue to monitor the progress at RedLeaf, TurboShale allows TomCo to have greater control of its future development plans.”

Jamie_55a91591db06b.jpg


Register here to be notified of future TOM Company articles
View full TOM profile View Profile

TomCo Energy Plc Timeline

Newswire
April 06 2016

Related Articles

drill.jpg
February 15 2017
Citing figures produced by Origin Energy, its partner in and operator of 16,000-square kilometres of licences, the gross best estimate of gas in place is put at a world-class 496 trillion cubic feet. Converting that to oil equivalent, it stacks up to 82bn barrels of the black sticky stuff.
onshore drilling operation
September 23 2016
DT Ultravert is on test with the oil field services giant Schlmberger and potentially solves the problem of ‘bashing’.
drillrigarty.jpg
October 18 2016
Drilling will begin late this quarter and is expected to take between 45 and 60 days.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use