Last checked at 25 Jun 2019 07:00
25 June 2019
TOMCO ENERGY PLC
("TOMCO" OR THE "COMPANY")
Field Test Update
TomCo Energy plc (AIM: TOM), the US operating oil shale exploration and development group focused on using innovative technology to unlock unconventional hydrocarbon resources, provides the following update regarding the field test programme at the Company's Holliday A Block in Utah (the "Field Test").
Further to Company's announcement of 8 May 2019, the Company is pleased to announce that the project is advancing well, with much of the preparatory work for the Field Test having now been completed, including:
· Following our recent site visit, we, together with Himes Drilling Company Inc. and IGES Inc. ("IGES"), have now determined the location of the three new wells for the Field Test, along with the layout of the drill pad and site services
· Road improvement works and pad construction completed at the new site
· The core sample from one of the recently drilled Monitor Wells, along with the cores from the nearby HB002 well (drilled in 2010), have been studied and analysed by IGES, with input from Mike Vanden Berg of Utah Geological Society, which reaffirmed the location for the Field Test wells
· All services and equipment providers engaged for the Field Test
· Exploration permit variation application has been submitted and approval expected shortly
The Company has though been informed that there will be a slight delay to the arrival of the bespoke ceramic parts required for the Field Test, which is likely to push back the commencement of the Field Test by 2 to 3 weeks. As a result, the drilling of the three new wells for the Field Test has now been scheduled for mid July. The upgraded RF Transmitters and remaining equipment are expected to be on site by mid/late July, ahead of the Field Test team, including engineers from Continental, arriving on site in late July with the commencement of the Field Test in early August. The Board anticipates that the Field Test will then run for up to 4 weeks, though this can be extended if needed.
The water levels in the three Monitor Wells have continued to reduce to the extent that only one of them now has water in it. The shallowest well MW3 has approximately 5ft of water in it.
We look forward to keeping shareholders updated as we move towards the commencement of the Field Test.
Andrew Jones, Executive Chairman, commented: "I am delighted with the progress achieved on our project thus far, and would like to thank John and the team for their continuing efforts. I am grateful to Michael Vanden Berg of the Utah Geological Society, who has been very generous with his time and resources. Michael has extensive knowledge of the Uinta basin, including our Holliday Block, and his support and input has been invaluable.
With the timetable now set, we look forward to providing the updates of the team's work on site in August.
During our recent trip to the US, we attended the governor of Utah's Energy Summit, where it was announced that a cooperation agreement had been entered into by Drexel Hamilton and Union Pacific Railroad to develop a rail link from the Uinta basin to the main rail lines outside Salt Lake City. The rail link has been championed by Mike McKee of Seven County Infrastructure Coalition, who we also met during our time in Salt Lake City. Mike showed great interest in our project and I look forward to working more closely with him as our project moves forward.
I would like to, again, personally thank the Utah's Office of Energy Development, Utah's Department of Oil, Gas & Mining (DOGM) and our landlord SITLA for their continued support."
Enquiries:
TomCo Energy plc
Andrew Jones (Chairman) / John Potter (CEO) +44 (0)20 3823 3635
Strand Hanson Limited (Nominated Adviser)
James Harris / Richard Tulloch / James Dance +44 (0)20 7409 3494
Turner Pope (Broker)
Andy Thacker +44 (0)20 3621 4120
For further information, please visit www.tomcoenergy.com.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014.