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TomCo Energy raises £3.5mln in placing to fund Greenfield joint venture

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TomCo Energy PLC (LON:TOM) has raised £3.5mln which is earmarked to progress plans of Greenfield Energy, the company’s joint ventures with Valkor LLC.

It is issuing 777.77mln new shares priced at 0.45p each through a share placing arranged by broker Novum Securities. The new shares represent some 115.5% of the company’s current issued share capital.

Placing investors will also receive one share warrant for every two placing shares they buy.

“I am delighted that we have secured funding that, together with the multi-site licence, will enable Greenfield to move to the next stage of development,” said John Potter, TomCo chief executive.

READ: TomCo announces board changes

TomCo today highlighted that Greenfield had entered into a multi-site licence with Petroteq Energy Inc, to use of its closed-loop system for use in the recovery of oil from oil sands. It is another piece of a jig-saw puzzle that promises to unlock value from otherwise inaccessible or sub-economic oil sand accumulations.

Greenfield is presently working to upgrade Petroteq’s oil sands plant (POSP) in Utah.

“We are confident that the upgrades to the POSP and the associated trials will demonstrate that the processes used at the POSP can be scaled to a commercial level and will allow Greenfield to move forward with finalising the FEED study,” Potter added.

“I am delighted that we have secured a multi-site licence with Petroteq for the use of its Oil Sands Technology. Coupled with obtaining funding to facilitate the securing of a site for a future plant in the Uintah Basin, I believe TomCo is now very well positioned.”

TomCo detailed the intended use of the placing proceeds, with US$500,000 set to be loaned to Greenfield which, coupled with US$1.5mln already provided by TomCo, will allow the JV company to secure the Petroteq licence.

Additionally, some £1.5mln will be retained by the company with the intention to use the funds in the future to secure a site for the first proposed commercial 10,000 bopd plant using Petroteq’s Oil Sands Technology pursuant to the Petroteq Licence. 

TomCo will retain £1.3mln to be used for general working capital purposes over the next 12 months and, if needed, provided further investment to Greenfield.

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