Business
Completion of a GBP 2m Convertible Loan
Completion of a GBP 2m Convertible Loan.
About this update from Tomco Energy Plc
[{"type":"text","content":"\n \nTOMCO ENERGY PLC\n\n(\"TomCo\" or \"the Company\")\n\nCompletion of a GBP 2m Convertible Loan with Kenglo One Ltd and an Addendum to\nthe two agreements entered into with Avenue Group Inc (Avenue) on 1st April\n2008 (Farm-in and Joint Operating Agreement [JOA])\n\nTomCo Energy Plc is pleased to announce the completion of a Convertible Loan of\nGBP 2m with Kenglo One Ltd on 29th December 2009. This money will be used by\nthe Company as working capital and to continue the re-development of the Heletz\nOil Field in Southern Israel (Heletz) (commenced in May 2008) with a gross\nproduction target of 400 barrels of oil per day (bopd) by the end of 2010. The\nConvertible Loan has a term of two years, is convertible at anytime at 1.5p per\nshare (a total of 133,333,333 shares), has an interest rate of 12% per annum\nand, subject to conditions, TomCo has the right to call for conversion.\n\nThe issue of this Convertible Loan represents the second part of the three part\nprogramme of commercial involvement of Kenglo One Ltd with TomCo which was\nannounced on 14th December 2009.\n\nThe Addendum signed with Avenue, inter-alia, retracts the previous purported\ntermination by Avenue of the Farm-in and JOA and provides for TomCo to cancel\nthe Arbitration proceedings and contains an agreement by TomCo to pay certain\nprevious 2009 Cash Calls made by Avenue in accordance with the terms of the JOA\nand Farm-in. The Addendum is expected to complete on 31st January with the time\nbetween the signing on 29th December 2009 and the Closing being used by Avenue\nto up-date accounts and production information to TomCo and for the parties to\nprepare and agree the development programme for 2010.\n\nTomCo Energy Plc is an oil company with conventional oil investments in the USA\nand Israel with 2P reserves of 336,000 barrels of oil in Israel and holds oil\nshale leases in Utah with Potential Resources of 120 to 230 million barrels of\noil.\n\nStephen Komlosy CEO Commented:\n\nWe are pleased to restore our relationship with Avenue Group Ltd and to be able\nto continue our joint re-development of the Heletz fields where the potential\nfor significant oil production with large scale exploration upside is an\nattractive investment for the Company. Closing the £2m Convertible Loan with\nKenglo One Ltd assures our future and will enable the Company to re...