TomCo Energy Plc (LON:TOM) has agreed the new framework for its new TurboShale Inc business unit to unlock the potential of the Holliday shale block in Utah.
The agreement has been agreed between TomCo, TurboShale Inc, Tomco subsidiary OMC, JR Technologies LLC and Venture Development Partners Ltd (VDP).
WATCH: TomCo Energy takes next steps towards unlocking potential of Holliday shale block
Extraction technologies involving methods like radio frequency heating, oxidation, high-voltage fracturing, and oil upgrading will be explored.
JRT will sell patents to TurboShale for US$25,000 in cash and an interest in TurboShale.
The former will also supervise TurboShale's laboratory work and any subsurface fieldwork. TomCo will provide management services to TurboShale, at an initial rate of $7,500 per month. TomCo will also be paid $2,500 per month for administrative services.
Before all that, TurboShale must however, complete an initial fundraise of up to US$1.5mln.
Attempts to develop Holliday have been ongoing for years. It was previously set for a ‘me too’ development, with technology (EcoShale in-capsule) being licensed from Red Leaf Resources – a firm that was pursuing a proof-of-concept project alongside Total - but that stalled amid lower oil prices and rising development costs.
Red Leaf settlement with Total
Today, however, TomCo said Red Leaf had reached a settlement agreement with Total E&P USA Oil Shale.
TomCo reckons RedLeaf has over US$100mln in available cash and no debt and that it intends to continue to pursue its business plan of commercialising the EcoShale process.
TomCo chief Chris Brown said: "These agreements and the combination of the respective parties provide both the technical expertise and market knowledge necessary to not only develop the TurboShale technology but apply it in a commercially viable manner.
"The developments at RedLeaf are also cause for optimism, and TomCo will continue to engage with RedLeaf as a technical partner."