Tomco Energy Plc · LSE:TOM
Tomco Energy — Investor Presentation (February 2013)
18 slides from Tomco Energy's investor presentation, February 2013
Slide 1: TomCo Energy plc Oil Mining, USA
TomCo Energy plc Oil Mining, USA • 126 million bbl oil in surface mineable JORC Measured Resource • 9,800 bopd production facility planned www.tomcoenergy.uk.com AIM: TOM
Slide 2: Disclaimer
Disclaimer IMPORTANT INFORMATION STRICTLY PRIVATE AND CONFIDENTIAL By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by TomCo Energy PLC (“the Company
Slide 3: TomCo Board
TomCo Board Sir Nicholas Bonsor Bt DL, Non-Executive Chairman • Member of British Parliament from 1979 to 1997: chairman of Defence Select Committee 1992-1995 & Minister of State at the Foreign Office 1995-1997 • Currently Non-Executive Chairman, Egerton International Ltd & Metallon plc & Non-Execut
Slide 4: Investment Highlights
Investment Highlights Attractive relative valuation $43m ($0.34/boe) versus: • Peer Group comparison (unconventional oils) $2.19/boe • Red Leaf – Total JV implied valuation $640m • Internal project NPV High grade resource • 126 million bbl of oil in surface mineable JORC Measured Resource • 21.0 gal
Slide 5: Oil Production from Shale
Oil Production from Shale Company • AIM quoted (TOM.L) • Market Cap: £27m* Resource • 2,919 acre (1,200 acre on Holliday Block) leases in Uintah County, Utah • 126 million bbl of oil in surface mineable JORC Measured Resource • 100% held Utah State leases expiring December 2024 Production • Process
Slide 6: Oil shale process comparison
Oil shale process comparison Pros Cons Pros Cons Pros Cons • Rapid pyrolysis • Low quality oil • Potential for • Potential aquifer • High quality oil • Pre-commercial • Emissions high production contamination • Energy efficient production • Water usage capacity • Water usage • Low water requirement
Slide 7: Green River Oil Shale Formation, USA
Green Green River River OilOil Shale Shale Formation Formation, USA Green River Formation estimated ~1.5 trillion barrels oil in place Richest layer is the Mahogany Zone TomCo • JORC Measured Resource of 126m bbl within Mahogany Zone on TomCo’s 1,200 acre Holliday Block • 21.0 gallons of oil per ton
Slide 8: Red Leaf/Total JV
Red Leaf/Total JV Total will pay 80% of the first $400m spent to commercially develop Red Leaf's existing surface mineable Utah assets for a 50% participating interest • The JV will invest $200m in an Early Production System (EPS) to prove the commercial scalability of Red Leaf’s EcoShale™ process b
Slide 9: Planned Commercial Capsule Characteristics
Planned Commercial Capsule Characteristics Expected EcoShale™ capsule characteristics: • Capsule dimension 900ft L x 500ft W x 153ft H • Capsule heated to 725°F (385°C) by circulating air at 900°F (482°C) • 210-day heating cycle • First oil at Day-100 • Peak oil at Day-150 • Low grade shale to be us
Slide 10: Holliday Block – Key Metrics
Holliday Block – Key Metrics TAXES & ROYALTIES • Federal tax 35% • State tax 5% Utah State tax refund (75% for 20 years) • Red Leaf royalty 6% • Production royalty (SITLA): 5% increasing after 5 years by up to 1% pa; 12.5% max; first 200,000 barrels per annum royalty free Expected CAPEX and OPEX • S
Slide 11: Expected TomCo & Red Leaf operational outlook
Expected TomCo* & Red Leaf operational outlook 2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 JORC upgrade to Probable Reserve from Measured Resource Permitting applications lodged for large mining and water discharge DOGM approval Notice of Intention to Commence Large Mining Op
Slide 12: Relative Valuation: EV/2P+2C ($/boe)
Relative Valuation Global unconventional oil multiples EV / (2P + 2C) boe $4.00 $3.50 $3.00 EV/2P+2C ($/boe) $2.50 avg. $2.19/boe $2.00 $1.50 $1.00 $0.50 $0.00 PetroBank Xcite Energy Canadian Oil Cenovus Canadian Imperial Oil Husky Suncor Bankers TOMCO Sands Trust Natural Petroleum ENERGY Resources
Slide 13: Corporate Information
Corporate Information Equity Weighted Share Price: 1.57p (07-Feb-13) Market Capitalisation: £27m ($43m) 3-Month Average Daily Liquidity: £71k (07-Feb-13) Shares: Issued & Outstanding 1,721,049,218 Fully Diluted 1,786,473,996 Holding % Kenglo One 492,920,548 28.6% Dominic Redfern & Sarah Cooke 167,25
Slide 14: Contacts
Contacts Paul Rankine Press Enquiries CEO Ed Portman/Conrad Harrington/Jos Simson paul@tomcoenergy.uk.com Tavistock Communications +44 20 7920 3150 Miikka Haromo eportman@tavistock.co.uk Finance Director miikka@tomcoenergy.uk.com 14
Slide 15: Appendices
Appendices 15
Slide 16: What is Oil Shale?
What is Oil Shale? Fine grained sedimentary rock rich in organic matter known as kerogen • Kerogen formed from decaying organic material by heat and pressure in environment similar to conventional oil • Different from shale oil (i.e. where greater depth, pressure and geologic time has already conver
Slide 17: EcoShale Mine plan
GreenEcoShale River Oil –Shale MineFormation plan Strip Mining Process • Preliminary site preparation • Overburden is stripped, sorted and stockpiled for construction material (design requires overburden) • Stripped site used for capsule construction • Designed to minimize handling and distance ore
Slide 18: Seep Ridge Pilot Plant
Seep Ridge Pilot Plant Heating pipes Insulation blocks (‘Flex-crete’) Control room Capsule etc. Oil storage tanks Burners/ blowers Burners/blowers Process facilities 18