TomCo Energy plc (LON:TOM) told investors it has now entered into a binding exclusivity agreement with Valkor Technology LLC over a potential oil sands venture across the company’s leases and nearby areas.
It establishes an exclusivity period, to 30 June 2020, in which the companies will seek to negotiate a legally binding agreement for the proposed venture.
During that period it is expected that pre-FEED studies will be undertaken.
"I am very pleased to announce the signing of the exclusivity agreement with Valkor as we seek to develop our relationship with the ultimate goal of forming the joint venture company,” said John Potter, TomCo chief executive.
“The pre-FEED study will include a 3rd party verification of the commercial scale plant design against Petroteq's operational plant at Vernal, Utah.
“The results of this and the rest of the work from the study will result in a financial model to determine the financial viability of the commercial plant.”
Separately, the company informed investors that it has decided to postpone the next test of Turboshale RF technology whilst the effects of the covid-19 virus is developing.
It added that it will continue to explore the technologies potential with laboratory-based testing until a field test can be planned.