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US: TomCo Energy announces placing and acquisition of additional oil shale leases
14 Dec 2018
AIM-listed TomCo Energy, the oil shale exploration, development and technology group focused on using innovative technology to unlock unconventional hydrocarbon resources, has raised £550,000 (gross) by way of a placing of 27,500,000 new ordinary shares of no par value in the Company at a price of 2 pence per Placing Share.
The Placing is subject to normal conditions including, inter alia, admission of the Placing Shares to trading on AIM and was organised by Turner Pope, the Company's broker.
The Company intends to utilise the net proceeds of the Placing to further the workstreams detailed in the Company's announcement of 3 December 2018 and provide additional working capital to the Group.
The Group has loans of, in aggregate, £250,000, provided by Christopher Brown that are due for repayment on or before 31 March 2019, if the board of the Company believes that the Company has sufficient funds available to it to repay the loans otherwise the loans shall be automatically extended. Further announcements will be made as appropriate.
The Company has issued 1,530,000 warrants giving the right to acquire new Ordinary Shares at a price of 2p for a period of two years to Turner Pope, the Company's broker.
Additional Oil Shale Leases
The Company is also pleased to announce that it has secured seven additional mineral leases from their current holder, subject to their transfer to the Group being approved by The Utah School and Institutional Trust Lands Administration ("SITLA"). The leases cover approx. 12,500 acres in aggregate with approx. 1.5bn barrels of oil in place (as measured by the United States Geological Society). These leases are located within the Uintah Basin, in the same Green River formation as the Company's other two leases, in Utah. There will be minimal ongoing costs in respect of these additional leases.
Source: TomCo Energy