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Energy

Tomco Energy to bear down even more on costs

Its partner, Redleaf, is working with Total on a commercial proof of concept for the pioneering technology

Tomco Energy (LON:TOM) will pare down costs even further while it waits for the results of its partner’s development next door to its Holliday Block in Utah.

The AIM-quoted firm has a permit for its project that will use specialised oil extraction technology to extract oil from shale without fracking.

Its partner, Redleaf, is working with Total on a commercial proof of concept for the pioneering technology but has put the project back by two years due to the low oil price.

Tomco repeated again today it will only begin commercial-scale construction when Red Leaf Resources' results are available.

Losses for the year to September were £716,000 (£732,000).

"Accordingly the board is continuing to prudently manage its cash resources and is actively considering further options for reducing costs and building value for shareholders," said Miikka Haromo, chief executive.

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