TomCo Energy Plc (LON:TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, has announced its unaudited interim results for the six-month period ended 31 March 2025.
Chairman’s Statement
During the period under review, the Company has continued to focus on its activities in Utah and, in particular, on progressing its discussions with its principal contractor and technical partner, Valkor LLC with respect to agreeing terms for a potential new partnership arrangement to jointly drill on the Group’s approximately 320 acres of leased acreage in Uintah County, Utah, USA, owned by Tar Sands Holdings II LLC. The Lease Area is subject to an existing 10-year lease arrangement, entered into and commencing in November 2021, between AC Oil, LLC, wholly-owned by the Company’s subsidiary Greenfield Energy, LLC, and TSHII. The Lease affords AC Oil the exclusive right to explore, drill and mine for, and extract, store and remove oil, gas, hydrocarbons and other associated substances on and from the Lease Area, together, inter alia, with the right to erect, construct and use such plant and equipment and infrastructure as required.
Valkor has continued to progress its neighbouring project, having previously secured permits from the Utah regulators for them to drill and operate on such state lands as well as on our Lease Area. Alongside its drilling activities, we understand that Valkor has also advanced plans for its own potential future oil sands separation operation in the vicinity.
Our current objective is for drilling operations on our Lease Area to commence in the autumn of 2025. This is dependent on the Company finalising negotiations and reaching a suitable definitive agreement with Valkor, on the prevailing economic conditions at the point of a drilling decision, and on the Company being able to raise the requisite funds to participate. In broad terms, we anticipate that each well will cost in the order of US$0.8 million to US$1.0 million to drill. Our intention is that each well should be funded individually by a consortium of investors led by Valkor, with TomCo being a significant participant in one or more of such wells. All being well, our outline plan envisages our participation in four wells within the next twelve months to seek to generate meaningful revenue and cash flow for the Group from our share in each well if drilling is successful.
Whilst pursuing its own oil sands separation operation, we intend to work closely with Valkor on our longer term oil sands separation project for Greenfield. Pursuant to the agreements entered into last year as part of the Company’s redemption of its 10% membership interest in TSHII, TSHII agreed to use best efforts to negotiate in good faith with Greenfield with respect to entering into an additional lease to provide mining rights on certain further acreage owned by TSHII which could potentially be a source of additional tar sands to feed Greenfield’s future proposed separation/processing plant(s). Accordingly, once such Additional Lease is secured in due course, Greenfield will remain well positioned to continue to pursue its existing tar sands development project subject to ultimately securing the requisite project financing and permitting going forwards. Securing such substantial financing remains uncertain in the current macroeconomic environment, but funding options such as potential strategic investors, joint venture or funding partners will continue to be explored.
Alongside the above initiatives, the Board continues to identify, review and evaluate other potential project and development opportunities. So far, no proposal has been sufficiently compelling for us to take forward, but we are encouraged by the number and variety of opportunities we are seeing.
We remain a small team at TomCo. Just over a year since the tragic loss of John Potter, our former Chief Executive, we know that we carry the responsibility to pursue his plans and vision for the Group’s development, and are most grateful for the ongoing support and patience of our shareholders and wider stakeholders who continue to believe in the TomCo cause. Not a day goes by without these thoughts guiding our endeavours.
Malcolm Groat
Executive Chairman, TomCo Energy
