Business
Acquisition of an initial 10% interest in TSHII
Acquisition of an initial 10% interest in TSHII.
About this update from Tomco Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4621S\n TomCo Energy PLC\n 16 November 2021\n \n \n \n \n 16 November 2021\n \n \n TOMCO ENERGY PLC\n \n \n (\"TomCo\" or the \"Company\")\n \n \n \n \n \n Acquisition of an initial 10% interest in TSHII and Loan Agreement\n \n \n TomCo Energy plc (AIM: TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, is pleased to provide a further update with respect to the Company's\n 100% owned subsidiary, Greenfield Energy LLC's (\"Greenfield\"), potential \n acquisition of up to 100% of the ownership and membership rights and interests in Tar Sands Holdings II LLC (\"TSHII\") (the \"Membership Interests\"), \n as announced on 9 June 2021 (the \"Agreement\").\n \n \n The Company is pleased to announce that Greenfield has now exercised its option to \n acquire an initial 10% of the Membership Interests for a total cash consideration of US$2 million, of which an amount of US$500,000 was satisfied by crediting the deposits paid previously. Accordingly, Greenfield now retains an exclusive option, at its sole discretion, to acquire the remaining 90% of the Membership Interests for additional cash consideration up to 31 December 2022, as detailed in the Company's announcement of 9 June 2021.\n \n \n Alongside the acquisition of the initial 10% of the Membership Interests, a newly incorporated subsidiary of Greenfield has been granted a lease over approximately 320 acres of the 760 acre site owned by TSHII (the \"Lease Area\"), for a nominal consideration and annual rental of US$320, together with a 12% of net sales royalty per barrel of conventional oil, gas or sulphur produced and removed from the Lease Area.\n \n \n The lease provides Greenfield's subsidiary with\n 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. The lease is for an initial term of 10 years and will continue thereafter for so long as any oil, gas or other hydrocarbons are being produced from the Lease Area or drilling operations are being prosecuted or as the parties may agree.\n \n \n Loan Agreement\n \n \n The...