TomCo Energy plc (LON:TOM) said the establishment of a joint venture with Valkor to establish Greenfield was a major step to prove the commercial scale potential of Petroteq's oil sands separation process.
The oil exploration and development company noted in its interim results that the agreement will seek to pursue the development of a plant utilising the Oil Sands Technology at a location yet to be determined in Utah, US.
Meanwhile, the group's operations on its Holliday A Block, including in respect of TurboShale's RF technology, have been postponed for the rest of 2020.
A decision on the next steps of the TurboShale technology development will be made towards the end of 2020.
As of June 29, TomCo had £340,000 in the bank, which the board said was enough to carry on for the rest of the year.
The firm continues to require further funding for its contribution of US$1.5mln as part of the joint venture.
In the six months ended March 31, the operating loss shrunk to £376,000 from £524,000 the year before.
“The establishment of the JV with Valkor to form Greenfield, post the period end, is a major step in us seeking to prove the commercial scale potential of Petroteq's oil sands separation process,” said chief executive John Potter.
“Valkor has developed a detailed understanding of the process requirements and the board is confident that, subject to funding, the upgrades to the Petroteq test plant and the resulting fron-end engineering design (FEED) will confirm our expectations that a commercial scale plant is financially viable.”