# TomCo Energy Greenfield’s operation of the POSP now complete

- Link: https://www.directorstalkinterviews.com/tomco-energy-greenfield%e2%80%99s-operation-of-the-posp-now-complete/4121006438
- Published: 2021-07-02T07:11:12+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 today that Greenfield Energy LLC, the Company’s 50/50 joint venture with
Valkor LLC, has now successfully completed all of its planned trial work utilising
Petroteq Energy Inc’s existing oil sands plant at Asphalt Ridge, Utah.

**Highlights**

·    Greenfield’s operation of the POSP now complete

·    All data required for the FEED (Front-End Engineering and Design) study has
been obtained

·    FEED study and third party verification process to be finalised by the end 
of July 2021

·   Greenfield now focused on completing the requisite due diligence on the Tar 
Sands II site as announced on 9 June 2021

**FEED Study**

The work undertaken by Greenfield in operating and modifying the equipment used 
in the POSP has provided sufficient information for the FEED study (as previously
outlined), to be completed, together with the third-party verification exercise.
A small number of amendments to the FEED are currently being reviewed and a draft
of the third-party verification work has now been received. It is therefore anticipated
that the FEED study will be finalised, together with the accompanying third party
verification, by the end of July 2021.

**POSP Operations**

The primary objective for TomCo’s investment into Greenfield and its subsequent 
operation of the POSP was to provide the operational data to support and inform 
the FEED for the commercial scale 10,000 barrels of oil per day plant design.  The
POSP has broadly met our objectives over the six month of operations to the extent
that the oil processed and produced has exceeded expectations in both warm and cold
conditions from a wide array of saturated ores.  In addition, the separation process
has also identified a profitable sand product.  Greenfield had set a target of achieving
a continuous production rate of 250 bopd per 12-hour shift.  Due to numerous technical
constraints, the POSP only managed to achieve the equivalent of approximately 180
bopd during this trial period of operation.  However, the operational data from 
such production has been incorporated into the process modelling performed by Valkor
and verified by a third-party engineering company with the results and recommendations
being incorporated into the FEED study and economics.  Additionally, ore processed
by the POSP from the Tar Sands II site, which is subject to the membership interest
purchase agreement announced on 9 June 2021, has identified that it is of significantly
higher oil saturation than originally thought.

Analysis of the produced oil has shown that the Basic Sediment and Water was consistently
less than 0.5%, the sulphur level was very low, at less than 0.5%, and the total
hydrocarbon content of the processed sand was on average 1.8%.  A sample of produced
oil is being shipped to a large oil refinery owned by a major US oil company for
their evaluation later this week.  A three-barrel sample of produced oil from the
POSP is also being shipped to Quadrise Fuels International plc in the UK, to enable
them to assess the suitability of the heavy sweet oil produced by the POSP for their
emulsion process.

**Tar Sands II**

Following the ending of Greenfield’s trial operation of the POSP, the Valkor team
concerned is in the process of switching over to conduct a detailed engineering 
analysis of the Tar Sands II site, including a full survey of the existing equipment
and utilities at the site.  This forms part of the due diligence exercise being 
undertaken by Greenfield in respect of its potential acquisition of up to 100% of
the ownership and membership rights and interests in Tar Sands II for the potential
future mining of oil sands and construction of a commercial scale processing plant
utilising the findings of the abovementioned FEED, as outlined in the Company’s 
announcement of 9 June 2021.

> **Commenting, John Potter, CEO of TomCo Energy, said**: “I am delighted that Greenfield
> have now concluded their work at the POSP and that all the data and information
> required to inform the FEED study has been obtained.  Whilst there have undoubtedly
> been some challenges along the way, our primary objectives have been achieved.
> I believe that Greenfield is now very well positioned to seek to utilise the design
> improvements and knowledge gained from operating the POSP in commercial scale 
> plants.
> “Greenfield’s focus therefore now shifts to completing the due diligence exercise
> on the Tar Sands II site and progressing the required funding package in order
> to pursue construction of the first 10,000 bopd facility.  These are very exciting
> times for TomCo as we look to realise Greenfield’s significant potential.”

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