TomCo Energy plc (LON:TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, has announced details of a renewed and closer collaboration with Valkor LLC, its current principal contractor, technical partner and former joint venture partner, involving, inter alia, the issue of new membership interests in Greenfield Energy, LLC such that Greenfield is now jointly (50:50) owned and controlled by TomCo and Valkor, with the intention of jointly exploiting its subsidiary’s existing leased oil-sands acreage in the Uinta Basin, Utah, United States, and intellectual and technological expertise.
In addition, Steven Byle, Valkor’s founder and CEO, is shortly intended to be appointed as a Non-Executive Director to TomCo’s Board pending completion of the Company’s Nominated Adviser’s customary due diligence process. Valkor has also agreed to certain amendments to its pre-existing loan facility to Greenfield including the conversion of approximately half of the outstanding principal and accrued/additional interest into new ordinary shares of no-par value each in the capital of TomCo at a substantial premium to the Company’s prevailing market share price. Furthermore, the Company has raised, in aggregate, £550,000 before expenses by way of a placing and subscription with certain existing and new investors to provide additional working capital for the TomCo group.
Highlights:
· Valkor issued with 50% ownership interest in Greenfield and re-introduced as a party to its operating agreement to assist closer collaboration with TomCo to unlock Greenfield’s considerable potential including, subject to additional funding being procured, potential drilling on AC Oil LLC’s leased acreage and potential construction of a future oil sands separation plant on the back of Valkor constructing and commissioning a similar plant on its neighbouring project area
· Existing loan facility between Greenfield and Valkor amended and restated to, inter alia, revise the repayment date and interest rate and settle half of the total amended outstanding balance via the issue of new equity in TomCo at a deemed price of 0.1p per share representing a substantial premium to the Company’s prevailing market share price
· Planned appointment of Steven Byle, a highly accomplished serial entrepreneur with substantial experience of innovative companies and technologies and international projects in the energy sector, as a Non-Executive Director to assist with the TomCo group’s growth and development
· £550,000 gross fundraise, by way of a placing and subscription with certain existing and new investors, to provide additional working capital and strengthen the group’s financial position
Malcolm Groat, Executive Chairman of TomCo, today commented:
“We are delighted to have reached agreement for closer collaboration and alignment of interests and purpose with Valkor, a well renowned service provider and operator in Utah, with their re-introduction as a co-owner of Greenfield to assist in unlocking its considerable potential. Valkor has also agreed, inter alia, to convert half of its outstanding loan facility into new equity in TomCo at a sizeable premium to help alleviate the group’s indebtedness and we look forward to Steve shortly joining the TomCo Board as a Non-Executive Director to help realise our significant growth ambitions.
“We are also most appreciative of the continued support of certain of our key long-term shareholders in the Fundraise which will provide additional funds to enable us to pursue our previously outlined strategic objectives. “
