TomCo Energy PLC (AIM:TOM, OTC:TMCGF) has published an updated independent reserves report for its Greenfield Energy subsidiary's interests in Tar Sands II (TSHII) project in Utah.
Greenfield owns a 10% membership interest in TSHII and an exclusive option, exercisable at its sole discretion, to acquire the remaining 90% of the membership interests for US$17.25 million in cash before the end of 2023.
Talks are ongoing about a funding package to exercise the option and ways for it to be executed, which would likely be through some form of stake disposal or reserves-based lending, said today's statement.
Consultant NSAI carried out the latest reserves update and estimates proved 1P oil reserves of 22.8 million barrels of oil, 2P oil reserves of 33.6 million bbls and 3P oil reserves of 44.3 million bbls.
NSAI further estimated associated volumes of marketable sand at 22.8 million tonnes (1P), 41.2 million tonnes (2P) and 59.8 million tonnes (3P)
Total estimated undiscounted future net revenues in respect of a gross 100% interest in TSHII have increased from NSAI’s January 2022 report and range from US$1.32 billion based on 1P reserves to approximately US$3.2 billion based on 3P reserves.
Net revenues range from approximately US$47.3 million based on 1P reserves to approximately US$77.6 million based on 3P reserves.
TomCo added the increase in reserves value reflects increased higher assumed future product prices for asphalt, heavy oil and diesel and particularly asphalt.
John Potter, TomCo’s chief executive, said: "Greenfield continues to progress its previously announced funding discussions, as well as exploring the potential for reserves-based lending which will be facilitated by the updated report.
"The findings of NSAI's latest report serve to further confirm our view that the TSHII site contains substantial economic resources, both in terms of oil and marketable sand.
"These estimated economic resources have significantly increased in value over the last 18 months and we remain fully focussed on securing the requisite funding for their future exploitation.”