Corporate Update and Directorate Change

RNS Number : 5751O

TomCo Energy PLC

29 May 2015

 

29 May 2015

TomCo Energy plc

("TomCo" or the "Company")

Corporate Update and Directorate Change

TomCo Energy plc (AIM: TOM), the oil shale exploration and development company focused on using innovative technology to unlock unconventional hydrocarbon resources, has made significant progress in 2015 securing the first of three major permits required under Utah State law to allow the Company to take its Holliday Block into production. As announced on 5 February 2015 the consultation period for its Ground Water Discharge Permit and Construction Permit has concluded and the Board expects final approval from the Utah Division of Water Quality soon.

However, on 18 May 2015 Red Leaf Resources Inc. ("Red Leaf") announced that it was delaying the target date for completion of capsule construction and applying first heat by two years. Consequently, the Board of TomCo has embarked on a corporate restructuring plan to materially reduce its corporate costs. As part of the restructuring plan, the Company has decided to scale down its Board with CEO Paul Rankine giving the Company three months' notice of his intention to stand down from the Board. Paul has agreed to act as a technical consultant to TomCo on expiry of his notice period.

TomCo expects that once the remaining major permits are issued, spending on Holliday block will be minimal. The Board continues to explore various M&A options to deliver shareholder value.

Sir Nicholas Bonsor, Chairman of TomCo, commented: "I thank Paul Rankine for his hard work and determination in seeing the Company through the Utah permitting process and wish him well with his future endeavours."

Enquiries:

For further information, please visit www.tomcoenergy.uk.comor contact:

TomCo Energy plc	Tel: [phone]
Miikka Haromo
Shore Capital (Nomad & Broker)	Tel: [phone]
Nominated Adviser
Pascal Keane / Edward Mansfield
Corporate Broking
Jerry Keen
Tavistock Communications (Financial PR & IR) Ed Portman / Jos Simson	Tel: [phone]

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

 

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