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Update on Red Leaf and EcoShale In-Capsule Process
Update on Red Leaf and EcoShale In-Capsule Process.
About this update from Tomco Energy Plc
[{"type":"text","content":"\n \nRNS Number : 1633B TomCo Energy PLC 14 June 2016 \n\n14th June 2016\n \nTomCo Energy plc (AIM: TOM )\n(\"TomCo\" or the \"Company\")\n \nUpdate on Red Leaf and EcoShale® In-Capsule® Process\n \nTomCo, the oil mining company, announces that it has received an update from its technology provider, Red Leaf Resources, Inc. (\"RedLeaf\"). This recent correspondence contained certain information which the Company considers to be material to RedLeaf's Early Production System (\"EPS\") capsule and to its development timetable.\n \nRed Leaf recently completed a pre-FEED (preliminary front end engineering design) commercial study for the EcoShale® technology on its Seep Ridge lease in Utah. Based on the results of this study, the RedLeaf Board has approved plans to proceed with the development of the commercial demonstration project, or EPS capsule at Seep Ridge. RedLeaf's joint venture partner and shareholder, TOTAL E&P USA Oil Shale, LLC (\"TOTAL\"), has advised RedLeaf that it is not prepared to move forward with an EPS. Ongoing discussions between RedLeaf and TOTAL continue in order to determine the best path forward. In the meantime, consistent with its boards' direction, RedLeaf is conducting the basis of design study for the EPS capsule. It has advised the Company that this study should be complete in the autumn of this year. \n \nKey cost components for a commercial project at Seep Ridge assuming >30,000 barrels per day of production were: \n· Capsule cost - $31.8 million for a 1 million barrel capsule\n· Working gas units and central processing plant - $4.1 billion\n \nRedLeaf believes the capsule costs are in line with their objectives, with additional room for improvement. However, the Seep Ridge processing plant costs are higher than it had originally budgeted. The capsule is the essence of its proprietary technology and was the focus of its engineering efforts. RedLeaf's management believes that with more time devoted to plant optimisation, there is room for cost savings in the processing plant budget. \n \nOutlook\n \nRedLeaf's current priority is to demonstrate the capsule technology through the successful completion of the EPS capsule. TomCo is advised that an EPS b...