Interim Results

TomCo Energy PLC 28 June 2007 TOMCO ENERGY PLC ('TomCo' or 'the Company') INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2007 Since completion of the acquisition of The Oil Mining Company Inc. on 16 January 2007, the Company has announced the investment of $1.39 million in the following ways: • $98,000 for a 40 per cent. interest in the Flusche drilling prospect in Texas; • $160,000 for a 20 per cent. interest in three TN drilling prospects in Tennessee; • $126,000 for a 30per cent. interest in the Rock Crossing drilling prospect in Texas; • $972,000 in a joint venture with Mark III Energy in Texas covering nine producing wells and drilling prospects for a further seventeen wells; and • $30,000 for a 15 per cent. interest in the JELP III drilling prospect in Kansas. Howard Crosby of TomCo commented: 'The period under review covers a period during which the Company has been transformed: the Board's strategy, of holding the oil shale assets until commercial production is economical, whilst pursuing exposure to conventional, low cost oil & gas production, is already being fulfilled.' For more information contact: Tel: +1 509 301 6322 TomCo Energy Plc Howard Crosby Strand Partners Limited Tel: (020) 7409 3494 Simon Raggett Warren Pearce Thomas Lockyer Bankside Consultants Tel: (020) 7367 8888 Simon Rothschild Louise Mason Chairman's Statement I am pleased to announce the interim results for TomCo (formerly Netcentric Systems Plc) for the six months ended 31 March 2007. These financial results reflect the fundamental changes which have taken place in the period. On 16 January 2007, Netcentric Systems Plc completed the reverse acquisition of The Oil Mining Company Inc, which owns two separate groups of mineral leases on approximately 2,918 acres of oil shale in the State of Utah, USA. SRK the independent firm of mining consultants reporting on the acquired leases, has estimated these leased oil shale areas to contain some 230 million barrels of oil. In conjunction with the acquisition, the Company raised a total of £1.78 million through a placing of 71.25 million new ordinary shares, at a placing price of 2.5 pence each. These funds are being used as working capital and also to enable the Company to investigate and make investments in producing oil wells and drilling in proven undeveloped acreage in the USA in accordance with the Company's published policy. On completion of the acquisition the Company changed its name to TomCo Energy Plc and was re-admitted to trading on AIM (Symbol: TOM.L). John Ryan, the President of The Oil Mining Company Inc, was also appointed to the Board as Commercial Director. The Company's strategy now is to hold the oil shale assets in reserve until such time as their exploitation becomes commercially and economically practical and to utilise the expertise of Howard Crosby, our CEO, and John Ryan (who together were the architects of the huge success of Cadence Resources Inc, a public US based oil and gas company which they took from a market value of under $1 million to $450 million over the five years from 2001 to 2006) in investment in oil wells and proven undeveloped acreage located in the USA. This strategy is now being implemented and the Company has, to date, already invested $1.39 million in such situations with a view to creating an investment portfolio of conventional American based, shallow producing oil wells and proven undeveloped drilling locations. Progress reports for these will be released as appropriate. Meanwhile the Board continues to actively seek further investments, acquisitions and oil business associations. Although there have been recent advances in the technology to extract oil from oil shale, particularly by Shell Oil, oil shale in the USA is not yet being commercially exploited on any scale. However, your Board believes that this situation should change over the next decade (as a result of the huge strategic and commercial pressures, together with present supply anxiety) and may, within this time frame, induce the USA to create an oil shale industry in the way that the Canadian tar sands industry was created. Shareholders can find detailed information on the Company's website: www.tomcoenergy.com which, in accordance with AIM Rule 26, contains a summary of our current strategy, detailed information about US oil shale and oil shale related links to US Government sites. Stephen Komlosy Chairman Income Statement (for the 6 months ended 31 March 2007) Six months Six months Year ended ended ended 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited Audited £'000 £'000 £'000 ----------- ----------- ----------- Continuing operations Revenue - - - Cost of sales - - - ----------- ----------- ----------- Gross profit - - - Administrative expenses (204) (32) (131) ----------- ----------- ----------- Operating loss (204) (32) (131) ----------- ----------- ----------- Interest receivable and similar income 5 2 4 ----------- ----------- ----------- Loss before taxation (199) (30) (127) Taxation - - - ----------- ----------- ----------- Loss for the period (199) (30) (127) ----------- ----------- ----------- Attributable to equity holders of the company (199) (30) (127) ----------- ----------- ----------- Six months Six months Year ended ended ended 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited Audited Earnings per share Pence per share Pence per share Pence per share --------------------- ----------- ----------- ----------- From continuing and discontinued operations Basic (0.07) (0.02) (0.09) Diluted (0.07) (0.02) (0.09) From continuing operations Basic (0.07) (0.02) (0.09) Diluted (0.07) (0.02) (0.09) --------------------- ----------- ----------- ----------- The financial information above may not be representative of future results. For example, the historical capital structure does not reflect the future capital structure. Future interest income and expense, certain operating costs, tax charges and dividends may be significantly different from those that resulted from the historical ownership structure. Statement of the Total Recognised Income and Expense (for the 6 months ended 31 March 2007) Six months Six months Year ended ended ended 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited Audited £'000 £'000 £'000 ----------- ----------- ----------- Loss for the financial period (199) (30) (127) --------------------- ----------- ----------- ----------- Net losses recognised directly in equity (199) (30) (127) --------------------- ----------- ----------- ----------- Total recognised income and expense for the period (199) (30) (127) --------------------- ----------- ----------- ----------- Attributable to the equity shareholders of the Company (199) (30) (127) --------------------- ----------- ----------- ----------- Balance Sheet (as at 31 March 2007) 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited Audited £'000 £'000 £'000 ----------- ----------- ----------- ASSETS Non current assets Property, plant and equipment 2 - 2 Available for sale investments 94 94 94 Participating interests 168 - - Goodwill 5,013 - - ---------------------- ----------- ----------- ----------- 5,277 94 96 ----------- ----------- ----------- Current assets Trade and other receivables 54 3 86 Cash and cash equivalents 1,004 2 83 ---------------------- ----------- ----------- ----------- 1,058 5 169 ----------- ----------- ----------- LIABILITIES Current liabilities Trade and other payables (62) (55) (47) ---------------------- ----------- ----------- ----------- (62) (55) (47) ----------- ----------- ----------- Net current assets 996 (50) 122 ---------------------- ----------- ----------- ----------- Net assets 6,273 44 218 ---------------------- ----------- ----------- ----------- SHAREHOLDERS' EQUITY Share capital 2,217 649 832 Share premium account 5,057 50 188 Retained earnings (1,001) (655) (802) ---------------------- ----------- ----------- ----------- Total equity 6,273 44 218 ---------------------- ----------- ----------- ----------- Cash Flow Statement (as at 31 March 2007) Six months Six months Year ended ended ended 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited Audited £'000 £'000 £'000 ---------- ---------- ---------- Cash flows from operating activities Cash generated from operations (157) (3) (99) Interest received 5 2 4 ----------------------- ---------- ---------- ---------- Net cash used operating activities (152) (1) (95) ----------------------- ---------- ---------- ---------- Cash flows from investing activities Purchase of equipment (1) - (2) Purchase of participating interests (168) - (94) ----------------------- ---------- ---------- ---------- Net cash used in investing activities (169) - (96) ----------------------- ---------- ---------- ---------- Cash flows from financing activities Issue of share capital 1,242 - 271 ----------------------- ---------- ---------- ---------- Net increase/(decrease) in cash and cash equivalents 921 (1) 80 Cash and cash equivalents at beginning of financial period 83 3 3 ----------------------- ---------- ---------- ---------- Cash and cash equivalents at end of financial period 1,004 2 83 ----------------------- ---------- ---------- ---------- Notes 1. Financial information The interim financial information has been prepared on the basis of the accounting policies as set out in the statutory financial statements for the year ended 30 September 2006. The financial information set out herein does not constitute statutory accounts. 2. Audit review These interim results have not been subject to a full review by our Company auditors which is in accordance with our normal interim procedures. 3. Segmental reporting Analysis by geographical segment There was no revenue in the six month period. The loss before taxation arises principally from the expenditure incurred in the United Kingdom in reshaping and relisting the Company. Net assets are held in the United Kingdom, with the exception of investments held in US oil properties totalling £168,000. Analysis by business segment Based on an analysis of risks and returns, the Directors consider that the Company has only one identifiable business segment; energy. The Directors consider that no further segmentation is appropriate. Operational Central activities costs Total Six months ended 31 March 2007 £'000 £'000 £'000 ----------------------- ---------- ---------- ---------- Continuing activities Revenue - - - Administrative expenses - (204) (204) ----------------------- ---------- ---------- ---------- Operating loss - (204) (204) Interest receivable and similar - 5 5 income ---------- ---------- ---------- ----------------------- Loss for the year - (199) (199) ----------------------- ---------- ---------- ---------- Financial assets - Property, plant and equipment - 2 2 - Available for sale investments 94 - 94 - Participating interests 168 - 168 Trade and other receivables - 54 54 Cash and cash equivalents - 1,004 1,004 Goodwill - 5,013 5,013 ----------------------- ---------- ---------- ---------- Total assets 262 6,073 6,335 ----------------------- ---------- ---------- ---------- Financial liabilities Trade and other payables - (62) (62) ----------------------- ---------- ---------- ---------- Total liabilities - (62) (62) ----------------------- ---------- ---------- ---------- Operational Central activities costs Total Six months ended 31 March 2006 £'000 £'000 £'000 --------------------- ----------- ----------- ----------- Continuing activities Revenue - - - Administrative expenses - (32) (32) --------------------- ----------- ----------- ----------- Operating loss - (32) (32) Interest receivable and similar - 2 2 income ----------- ----------- ----------- --------------------- Loss for the year - (30) (30) --------------------- ----------- ----------- ----------- Financial assets Trade and other receivables 94 3 97 Cash and cash equivalents - 2 2 --------------------- ----------- ----------- ----------- Total assets 94 5 99 --------------------- ----------- ----------- ----------- Financial liabilities Trade and other payables - (55) (55) --------------------- ----------- ----------- ----------- Total liabilities - (55) (55) --------------------- ----------- ----------- ----------- Operational Central activities costs Total Year ended 30 September 2006 £'000 £'000 £'000 --------------------- ----------- ----------- ----------- Continuing activities Revenue - - - Administrative expenses - (131) (131) --------------------- ----------- ----------- ----------- Operating loss - (131) (131) Interest receivable and similar - 4 4 income ----------- ----------- ----------- --------------------- Loss for the year - (127) (127) --------------------- ----------- ----------- ----------- Financial assets - Property, plant and equipment - 2 2 - Available for sale investments 94 - 94 Trade and other receivables - 86 86 Cash and cash equivalents - 83 83 --------------------- ------------ ----------- ----------- Total assets 94 171 265 --------------------- ------------ ----------- ----------- Financial liabilities Trade and other payables - (47) (47) --------------------- ----------- ----------- ----------- Total liabilities - (47) (47) --------------------- ----------- ----------- ----------- 4. Earnings per share Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. Share warrants do not have a dilutive effect. Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below: Weighted average number of Per share Earnings shares amount Six months ended 31 March 2007 £'000 000's pence -------------------------- --------- ---------- ---------- Basic EPS Earnings attributable to ordinary (199) 290,300 (0.07) shareholders Effect of dilutive securities - - - --------- ---------- ---------- Diluted EPS Adjusted earnings (199) 290,300 (0.07) -------------------------- --------- ---------- ---------- Weighted average number of Per share Earnings shares amount Six months ended 31 March 2006 £'000 000's pence -------------------------- --------- ---------- -------- Basic EPS Earnings attributable to ordinary (30) 139,735 (0.02) shareholders Effect of dilutive securities - - - -------------------------- --------- ---------- -------- Diluted EPS Adjusted earnings (30) 139,735 (0.02) -------------------------- --------- ---------- --------- Weighted average number of Per share Earnings shares amount Year ended 30 September 2006 £'000 000's pence -------------------------- --------- ---------- --------- Basic EPS Earnings attributable to ordinary (127) 149,227 (0.09) shareholders Effect of dilutive securities - - - -------------------------- --------- ---------- --------- Diluted EPS Adjusted earnings (127) 149,227 (0.09) -------------------------- --------- ---------- --------- Notes TomCo is an AIM listed company which continues to actively develop a conventional oil production profile in the South-Western United States. The Company also owns leases on approximately 3000 acres of shale oil holdings in Utah, estimated by SRK (an independent firm of mining consultants) to contain some 230 million barrels of oil. This information is provided by RNS The company news service from the London Stock Exchange

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