3 December 2018
TomCo Energy plc
("TomCo" or the "Company")
APPOINTMENT OF TECHNICAL ADVISERS AND FIELD TEST UPDATE
TomCo Energy plc (AIM: TOM), the oil shale exploration, development and technology group focused on using innovative technology to unlock unconventional hydrocarbon resources, provides the following update.
Appointment of Technical Advisers
The Company is pleased to announce that it has strengthened its technical capabilities with the engagement of IGES Inc. ("IGES") as its Geotechnical Engineering adviser and Matt Himes as its Field Operations Engineering adviser.
The engagement of IGES not only provides access to a broad range of resources, but also an in-depth knowledge of the Uintah basin in which TomCo's oil shale leases, including its Holliday Block, reside. IGES also has a good working relationship with Himes Drilling Company Inc. ("Himes Drilling"), the Company's drilling contractor of which Matt Himes is the principal.
Matt Himes has over 20 years' experience in the oil and gas sector, having previously been a drilling supervisor with Shell and for the last four years the principal of Himes Drilling. He will be a major asset to the Company and, already, his knowledge and support during the recent field test on the Company's Holliday Block was invaluable. Himes Drilling itself has extensive experience of operating in the Uintah basin and with oil shale.
Field Test Update
The Company is also pleased to provide an update from the initial phases of TurboShale Inc.'s ("TurboShale", in which TomCo has an 80% interest) Field Test on the Company's Holliday Block (the "Field Test"). Although the 'live' part of the Field Test has been deferred, we have been able to gather a large amount of valuable information together with on-site experience of operating the RF system from the work completed to date.
Tests on the RF transmitters were all successful, proving the delivery of RF energy into the wells through the designed system. In addition, the team also tested the antenna design, which was proven and operated at the correct frequency. The design of the wellhead was also shown to be effective, holding the RF antenna in place and delivering RF power to it.
The Company was also able to assemble and run the whole system on site, together with the supporting services, providing the Company with key information as to the system's operating parameters as well as enabling the Company to calculate a cost breakdown and identify the levels of labour needed to operate a commercial scale facility.
Development of the artificial lift system to address the presence of water also had to consider several criteria, unique to the RF system. These included the need to separate the antenna from the lift system to ensure the frequency the antenna was designed to transmit at was not affected and to ensure that it could also continue to operate in a high temperature environment of up to 350°C. Whilst we were able to achieve these design requirements and demonstrate that that artificial lift system was able to reduce the level of water in the well, we were not able to run an extended test as part of the 'live' Field Test.
The Company and TurboShale, together with Brian Considine (Site Manager for Raytheon during the BART program), Bob Higgins (Lead Engineer in Brian's team at Raytheon), Himes Drilling, PROS (3 phase separator supplier), Continental Electronics (Transmitter supplier) and our technical advisers, are continuing to review and consider the results of the Field Test and we are progressing the following work streams:
· Ongoing analysis of the source of water encountered during the Field Test and the solution to reduce its impact on the RF system;
· Reviewing the design and cost data obtained during the Field Test;
· Progressing a strategy towards a scaled production; and
· Developing a financial model for the pre-commercial program; and
· Considering the optimum next steps for the for the development and advancement of TurboShale's RF technology.
John Potter, TomCo's CEO, commented: "I am delighted to announce IGES's appointment. They bring an in-depth knowledge of the Uintah basin in which TomCo's oil shale leases reside and will be integral in the work currently being undertaken, in particular relating to water influence on the Company's Holliday Block.
Matt Himes' appointment gives us a wealth of engineering knowledge and experience already proven with his help during the recent Field Test.
Our activities during 2018, including the Field Test, produced a significant amount of encouraging data which we continue to analyse and consider to determine the optimum next steps for TomCo and we look forward to updating shareholders in this regard."
Enquiries:
TomCo Energy plc
Andrew Jones (Chairman) / John Potter (CEO) +44 (0)20 3823 3635
Strand Hanson Limited (Nominated Adviser)
James Harris / Richard Tulloch / James Dance +44 (0)20 7409 3494
Turner Pope (Broker)
Andy Thacker +44 (0)20 3621 4120
For further information, please visit www.tomcoenergy.com.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
