Completion of a GBP 2m Convertible Loan

TOMCO ENERGY PLC

("TomCo" or "the Company")

Completion of a GBP 2m Convertible Loan with Kenglo One Ltd and an Addendum to
the two agreements entered into with Avenue Group Inc (Avenue) on 1st April
2008 (Farm-in and Joint Operating Agreement [JOA])

TomCo Energy Plc is pleased to announce the completion of a Convertible Loan of
GBP 2m with Kenglo One Ltd on 29th December 2009. This money will be used by
the Company as working capital and to continue the re-development of the Heletz
Oil Field in Southern Israel (Heletz) (commenced in May 2008) with a gross
production target of 400 barrels of oil per day (bopd) by the end of 2010. The
Convertible Loan has a term of two years, is convertible at anytime at 1.5p per
share (a total of 133,333,333 shares), has an interest rate of 12% per annum
and, subject to conditions, TomCo has the right to call for conversion.

The issue of this Convertible Loan represents the second part of the three part
programme of commercial involvement of Kenglo One Ltd with TomCo which was
announced on 14th December 2009.

The Addendum signed with Avenue, inter-alia, retracts the previous purported
termination by Avenue of the Farm-in and JOA and provides for TomCo to cancel
the Arbitration proceedings and contains an agreement by TomCo to pay certain
previous 2009 Cash Calls made by Avenue in accordance with the terms of the JOA
and Farm-in. The Addendum is expected to complete on 31st January with the time
between the signing on 29th December 2009 and the Closing being used by Avenue
to up-date accounts and production information to TomCo and for the parties to
prepare and agree the development programme for 2010.

TomCo Energy Plc is an oil company with conventional oil investments in the USA
and Israel with 2P reserves of 336,000 barrels of oil in Israel and holds oil
shale leases in Utah with Potential Resources of 120 to 230 million barrels of
oil.

Stephen Komlosy CEO Commented:

We are pleased to restore our relationship with Avenue Group Ltd and to be able
to continue our joint re-development of the Heletz fields where the potential
for significant oil production with large scale exploration upside is an
attractive investment for the Company. Closing the £2m Convertible Loan with
Kenglo One Ltd assures our future and will enable the Company to re-apply for
admission to AIM during the first quarter of 2010.

Enquiries:

TomCo Energy Plc [phone]

Stephen Komlosy

John May FCA