Tomco Energy (LON:TMC) has relayed comments from Red Leaf Resources that say the economics of its proprietary EcoShale process are improving.
AIM-quoted Tomco has successfully permitted a proposed project in Utah that aims to use the specialised oil extraction technology, which allow oil to be extracted from shale without fracking.
It had, however, decided to wait until Red Leaf completes a commercial proof of concept trail, on its own project, also in Utah, where it is partnered with Total.
Red Leaf and Total earlier this year put their project back by around two years amid falling oil prices.
The first generation EcoShale pilot required an oil price of at least US$80 per barrel in order to be commercial , Red Leaf revealed; therefore, the project as it stood was put on hold and the partners have since worked on a number of improvements that will be rolled into the second generation EcoShale pilot.
This has begun to yield improvements, according to Red Leaf.
“Through design simplifications, second generation capsules should be cheaper to build and contain more oil per capsule,” Red Leaf said.
“As a result, we expect per barrel economics to be substantially improved compared to first generation technology."