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TSHII Update & Updated Independent Reserves Report
TSHII Update & Updated Independent Reserves Report.
About this update from Tomco Energy Plc
[{"type":"text","content":"\n\n17 August 2023\nTOMCO ENERGY PLC\n(\"TomCo\" or the \"Company\")\n \nTSHII Update and\nUpdated Independent Reserves Report for the TSHII Site\n \nTomCo Energy plc (AIM: TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, is pleased to provide an update with respect to the Company's 100% owned subsidiary, Greenfield Energy LLC's (\"Greenfield\"), potential acquisition of the remaining ownership and membership rights and interests in Tar Sands Holdings II LLC (\"TSHII\") (the \"Membership Interests\"), and the findings of an updated independent reserves report for the TSHII site (the \"Updated Report\"). The Updated Report was commissioned from Netherland, Sewell & Associates, Inc. (\"NSAI\") estimating the oil reserves, associated marketable sand volumes, and future net revenue, as of 30 June 2023, in respect of a potential commercial scale project on the mining properties comprising the TSHII site.\n \nAs previously announced, Greenfield owns a 10% Membership Interest in TSHII and holds an exclusive option, exercisable at its sole discretion, to acquire the remaining 90% of the Membership Interests for additional cash consideration of US$17.25 million on or before 31 December 2023 (the \"Option\"), together with a matching right, as set out in the Company's announcement of 6 June 2023.\n \nTSHII Update\n \nThe Company remains in discussions to secure a potential funding package for Greenfield, that would, inter alia, enable Greenfield to ultimately exercise the Option and pursue its previously announced wider development plans. In this regard, the principal route under active consideration remains TomCo potentially disposing of a majority stake in Greenfield to a partner(s) in return for, inter alia, certain upfront cash consideration, a continuing minority equity participation for TomCo in Greenfield (without the requirement for further capital contributions from TomCo) and the provision of a sizeable funding package to Greenfield. As previously announced, any such proposed transaction would likely constitute a fundamental disposal for TomCo pursuant to the provisions of Rule 15 of the AIM Rules for Companies and therefore be subject, inter alia, to the approval of TomCo's shareholders at a duly convened ...