TomCo Energy plc (LON:TOM) has raised £925,000 through a share placing to support the company’s plans to advance oil and/or tar sands opportunities, along with the ongoing development and revision to its TurboShale system.
The company is issuing 142.3mln new shares priced at 0.65p each. The placing was arranged by broker Turner Pope Investments. The placing shares come with warrants, one issued for every two shares, with an exercise price set at 1.5p.
The placing comes as TomCo gains access to the Valkor oil sands opportunity through a joint venture in the Uintah basin, Utah, with engineering firm Valkor LLC.
Valko has over the past eighteen months assisted with design improvements to the closed-loop system used by Petroteq Energy for the recovery of oil from oil sands.
TomCo noted that the partnership will give it valuable experience and knowledge as it looks at oil/tar sand opportunities across its leases, which are present in several areas.
A memorandum of understanding (MOU) has been signed and the new partners will now seek to agree the scope of a resource study, to identify the locations of the potential resource together with potential engineering, mining and/or processing solutions.
It is envisaged that the partner would, in time, build a facility capable of 3,000 barrels of oil per day.
"The introduction to Valkor provides a number of exciting opportunities to the group,” said John Potter, TomCo chief executive in a statement.
“Valkor's experience in the oil/tar sands space, given their work and relationship with Petroteq, provides TomCo with another avenue to potentially unlock the value of its leases,” he added.