# TomCo Energy completes drilling of three exploration wells on the TSHII site

- Link: https://www.directorstalkinterviews.com/tomco-energy-completes-drilling-of-three-exploration-wells-on-the-tshii-site/4121066809
- Published: 2022-05-31T07:28:25+01:00
- Author: Giles

**TomCo Energy plc** (LON:TOM), the US operating oil development group focused on
using innovative technology to unlock unconventional hydrocarbon resources, has 
announced an update with respect to the Company’s wholly owned subsidiary, Greenfield
Energy LLC (“Greenfield”).  As previously announced, TomCo, via Greenfield, currently
owns a 10% Membership Interest in Tar Sands Holdings II LLC (“TSHII”) together with
an exclusive option, at its sole discretion, to acquire the remaining 90% of the
Membership Interests for certain additional cash consideration in the period up 
to 31 December 2022.

_**Loan Agreement**_

On 16 November 2021, the Company announced that the acquisition of the initial 10%
of the Membership Interests in TSHII had been financed by way of an unsecured US
$1.5 million loan from Valkor Oil & Gas LLC to Greenfield.  The Loan was scheduled
to be repaid on or before 30 May 2022, however the terms of the loan have now been
varied in order to extend the repayment date to on or before 30 June 2022.

As a former JV partner, Valkor is considered to be a related party of the Company(
as defined in the AIM Rules for Companies) and, accordingly, the variation of the
Loan’s terms is deemed to constitute a related party transaction pursuant to AIM
Rule 13. The TomCo directors, having consulted with Strand Hanson Limited, the Company’s
Nominated Adviser, consider that the variation of the Loan’s terms is fair and reasonable
insofar as the Company’s shareholders are concerned.

_**TSHII Drilling Update**_

Further to the Company’s announcements of 10 February and 10 March 2022, the Company
is pleased to report that the drilling of the three exploration wells on the TSHII
site has been completed.

Initial results from the drilling met with the Company’s expectations.  The results
of this drill programme are currently being assessed and confirmed by Netherland,
Sewell & Associates, Inc..  NSAI will then provide an update to its initial TSHII
reserves report, as announced by the Company on 13 January 2022, in the coming months.

Additionally, Greenfield is currently progressing the requisite permitting for the
planned production well programme on the TSHII site following recent changes to 
the relevant permit legislation.  The Company currently anticipates that the necessary
permits will be secured in time for drilling of the wells to commence in Q3 2022,
assuming the requisite funding has been secured, with initial production then expected
in Q4 2022.  The number of wells to be permitted has been increased from five to
seven.

> **Commenting, John Potter, CEO of TomCo, said**: “_We continue to make good progress
> with our plans for the TSHII site and are pleased with the positive results we
> have already seen from the three exploration wells.  We are also advancing the
> previously announced due diligence exercise being undertaken by a potential financing
> party currently interested in backing our plans for Greenfield, together with 
> other matters in relation to the TSHII site._
> _“The Company’s Board has recently undertaken a site visit to Utah and met with
> the Valkor team and our sand off-take partner.  Whilst in Salt Lake City the Board
> also met with the Company’s local professional advisers and were able to view 
> some of the cores recovered from the exploration wells, which are being stored
> at the Utah Geological Society’s core store. _ _We look forward to providing further
> updates in due course.”_

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