27 March 2015
TomCo Energy plc
("TomCo" or the "Company")
Update on Timing from Red Leaf Resources
TomCo Energy plc today announces that further to the announcement of 5 February 2015 the Company's technology provider Red Leaf Resources Inc. ("Red Leaf") has released an update as to the timing of construction for its Early Production System ("EPS") capsule.
Red Leaf's announcement, which can be seen at http://www.tomcoenergy.uk.com/investors/media-and-analyst-reports contained the following information:
Red Leaf Resources Inc., an oil shale development company with proprietary technology and significant resources under lease in Utah and Wyoming, today announced an adjustment to the construction schedule of its commercial demonstration project to accommodate improvements expected to result from design optimization work already underway.
Red Leaf and its major partner have decided to accelerate commercial technology optimization for the Early Production System (EPS), the first commercial demonstration project of Red Leaf's EcoShale® technology. In part, this decision is the result of the low commodity oil price environment, as well as recently identified efficiencies and engineering advances that may be utilized in the commercial demonstration project.
"This is an acceleration of design optimization and an adjustment to the construction schedule to allow for incorporation of the design improvements," said Red Leaf CEO Adolph Lechtenberger. "We had anticipated the design optimization work to take place after completion of the EPS, but we have an opportunity to include the second generation commercial technology sooner rather than later. These enhancements will improve the economics of the Ecoshale® technology in the lower crude price environment."
Some site activity will continue while Red Leaf advances engineering on certain elements to further optimize the second-generation capsule design.
"The financial commitments related to this project remain solidly in place," continued Lechtenberger. "It's also worth noting that we still anticipate being the first oil shale developer to reach commercial viability in the U.S."
TomCo will only progress with commercial-scale construction on its Holliday Block at such time as the results of Red Leaf's nearby EPS capsule are available.
Enquiries:
For further information, please visit www.tomcoenergy.uk.com or contact:
TomCo Energy plc |
Tel: +44 20 7917 6822 |
Paul Rankine, CEO / Miikka Haromo, CFO |
|
Shore Capital (Nomad & Broker) |
Tel: +44 20 7408 4090 |
Nominated Adviser |
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Pascal Keane / Edward Mansfield |
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Corporate Broking |
|
Jerry Keen |
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|
|
Tavistock (Financial PR & IR) Ed Portman / Jos Simson |
Tel: +44 20 7920 3150 |
Notes to Editors:
TomCo Energy plc (AIM: TOM) is a London based, AIM-listed company, with substantial Oil Shale assets in Utah, USA.
TomCo holds a 100% interest in two Oil Shale leases, comprising 5 blocks covering 2,919 acres in Uintah County, Utah. Independent natural resources consultants SRK Consultants Ltd, part of the internationally recognised SRK Group, has declared a surface mineable JORC compliant Measured Resource of 126 million barrels on TomCo's 1,186 acre Holliday Block lease.
The Company has entered into a licence agreement with Red Leaf Resources Inc ("Red Leaf") for the use of their EcoShale™ In-Capsule Process, a proven and environmentally sensitive technology, to extract Oil from TomCo's leases.
Additionally, Red Leaf is planning a 9,800 bopd commercial operation at their Seep Ridge site, which lies about 15 miles SW of TomCo's Holliday Block lease.
Led by a highly experienced management team, TomCo's strategy is to develop the Holliday Block lease as a similar follow-on project to Seep Ridge using the EcoShale™ In-Capsule Process, with the same targeted production of 9,800 bopd.
Glossary:
bopd: barrels of oil per day
JORC Code: The mineral resource classification code devised by the Australasian Joint Ore Reserves Committee
