Completes Investment in Red Leaf

RNS Number : 5468A

TomCo Energy PLC

02 April 2012

 



2 April 2012

TomCo Energy Plc

("TomCo" or "the Company")

TomCo Completes $5m Investment in Red Leaf Resources

Further to the announcement made on 30 March 2012, TomCo Energy Plc, (AIM:TOM), the AIM listed company with oil shale assets in the State of Utah, USA, is pleased to confirm that it has completed its $5 million investment in Red Leaf Resources Inc. ("Red Leaf") (the "Investment"),  as part of a  $100 million raising from Red Leaf in conjunction with the closing of a Joint Venture ("JV") with a super-major oil and gas company.

The Investment includes the £2,957,500 subscription by Altima Global Special Situations Master Fund Ltd ("AGSS"), Dominic Redfern ("DR") and Mark Donegan ("MD") with Tomco at 1.75p per ordinary share (the closing mid market price the day prior to the announcement of the Investment) (the "Subscription"). The balance of the Investment will be financed from TomCo's existing cash resources. AGSS, DR and MD currently own or have the right to acquire approximately 21.8% of TomCo and the Subscription will therefore constitute a related party transaction under the Aim Rules. Accordingly, the Directors consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. Following completion of the Subscription, the Related Parties will hold or have the right to acquire approximately 29.96% of TomCo.

Application has been made for the admission of 169,000,000 ordinary shares of 0.5p each in the Company ("New Ordinary Shares") the subject of the Subscription, to be admitted to trading on AIM. The New Ordinary Shares will rank pari passu with the existing ordinary shares and it is expected that admission will  become effective and trading will start at 8.00 a.m. on 10 April 2012. Following admission of the New Ordinary Shares, the total number of voting rights in the Company's ordinary shares will be 1,615,483,169.

Paul Rankine, Interim CEO of TomCo Energy, commented: "This deal between one of the 'super-major' oil and gas companies and Red Leaf underlines our confidence that both oil shale and the EcoShale process will play a major role in the future of processed fuels. Red Leaf has now secured the funding to fully develop the Seep Ridge project and TomCo is continuing the progress towards production at our Holliday Block."

For further information please visit www.tomcoenergy.com or contact:

TomCo Energy -                                                           020 7766 0078

Sir Nicolas Bonsor, Chairman

Numis - Nominated Adviser                                          020 7260 1000

Alastair Stratton/Oliver Cardigan, Corporate Finance

James Black, Corporate Broking

Newgate Threadneedle -                                              020 7653 9840

Graham Herring, Richard Gotla

Notes to Editors:

TomCo Energy Plc owns oil shale leases covering approximately 3,000 acres in the Green River Shale Formation, Uinta County, Utah in 4 separate tracts. SRK Consultants Ltd has declared a surface mineable JORC compliant Indicated Resource of 123 million barrels on the main tract of TomCo's Holliday Block lease.

TomCo has entered into a Licence with Red Leaf Resources Inc (Red Leaf), which owns the EcoShale^TM In-Capsule Process (EcoShale), to use this unique and environmentally sensitive technology to extract oil from TomCo's leases. Red Leaf is planning a 9,500 bopd commercial operation at their Seep Ridge site, which lies about 15 miles SW of TomCo's Holliday Block lease.

TomCo's strategy is to develop the Holliday Block lease as a similar follow-on project to Seep Ridge using the EcoShale In-Capsule Process, with the same targeted production of 9,500 bopd.

Glossary:

bopd: barrels of oil per day

JORC Code: The mineral resource classification code devised by the Australasian Joint Ore Reserves Committee

 

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