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Oil & Gas

TomCo Energy interims highlight progress in Utah joint venture

The Greenfield Energy venture made strides during the period, establishing production and more recently starting crude shipments

TomCo Energy PLC (LON:TOM) used its interim results to highlight progress made in Utah despite the challenges of the Coronavirus pandemic.

The company’s Greenfield Energy joint venture, with partner Valkor, established production from its pilot project at Petroteq’s oil sands plant (POSP) at Asphalt Ridge.

Results from POSP and encouraging findings from a recent draft Front-End Engineering and Design (FEED) study support the company’s belief that the pilot could be repeated at commercial scale, in a purpose-built facility.

It has, indeed, advanced its plans as it's presently investigating the possibility of acquiring up to a 100% interest in a large oil sands site in Utah. The site is believed to be suitable for the construction of a potential initial commercial-scale plant.

At the same time, the Greenfield JV company is in the early stages of exploring possible financing opportunities for the project.

During the first half, ended March 31, TomCo raised some £3.5mln of funding through the issue of new shares priced at 0.45p.

Earlier this month, the company noted that it had made its first shipment of crude and that it was exploring transactions to sell-on sand processed at the POSP.

No revenues were reported for the first half of 2021. The company reported a £71.36mln loss for the six months.

The company said it had around £1.39mln of cash reserves as of June 21.

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