TomCo Energy Plc (LON:TOM ) told investors it has secured an extension to a construction permit for the Holiday Block oil shale project, in Utah.
The permit has been extended to July 2020, the company revealed. And, as a result, it now has the same term as the project’s existing ground water discharge permit.
It comes as RedLeaf - the company developing technology that’s being licenced to TomCo for the project - assesses potential changes to the design with a view to improving the technology’s commercial applicability.
TomCo has been planning to advance the Holiday project only when Redleaf’s pilot project has shown the technology can be a technical and commercial success.
Andrew Jones, Tomco chairman, said: "This long term extension is excellent news for TomCo.
“The company is well placed to monitor progress and await further developments from its technology partner Red Leaf including its joint venture with TOTAL and Red Leaf's Early Production Stage Capsule, whilst we develop our new palm oil division and concentrate on producing cash flows in the near-term.”
Tomco, which recently brought in new management, in May announced it was assessing a possible acquisition of palm oil assets in West Africa which have the opportunity of low capex costs and potential for cash flows starting in mid-2017.