TomCo Energy PLC’s (LON:TOM) Greenfield Energy joint venture has now received a draft front-end engineering and design (FEED) study for its oil sands project in Utah.
The study included test data for a number of items of additional equipment that could be utilised in a potential future commercial scale plant, plus other points of potential optimisation. It is expected that the FEED study will be finalised after a review, including, third-party verification, which anticipated by early July 2021.
TomCo also highlighted that following the recent resumption of operations at the POSP (Petroteq Energy’s oil sands plant) it is expected that the target production rate, 250 barrels per day, will be reached shortly.
A sufficient quantity and quality of oil has so far been produced so that an initial shipment of 250 barrels can be made.
“Receipt of the draft FEED study and the production of the first load of oil for sale from the POSP are significant milestones for both Greenfield and TomCo,” said John Potter, TomCo chief executive.
“I believe Greenfield is now well positioned to move forward with sourcing the requisite funding for the potential construction of its first commercial scale plant and look forward to providing further updates in due course."
On the commercial front, Greenfield is also working with a local specialist firm to identify potential customers for the processed sand, and, they have taken an initial load of 40 tonnes. It is expected that the firm will take a further 500 tonnes of processed sand over the coming weeks.
TomCo noted that Valkor, on behalf of Greenfield, is currently in discussions with the landlord of the POSP site to seek an extension to Greenfield's lease for a further six months from 1 July 2021.
The operation in Utah is part of a project that’s being advanced by the Greenfield Energy LLC joint venture company, which comprises Valkor LLC and TomCo.
The pilot utilises a plant owned by Petroteq Energy and includes technology licenced from Quadrise Fuels International.
Subject to the pilot results and the FEED, Greenfield will develop a new 10,000 bopd plant – comprising two 5,000 bopd trains – utilising design improvements and knowledge gained from the POSP pilot.