TomCo Energy Full Year Loss Narrows As Seeks Further Funding

29th Mar 2018 13:50

LONDON (Alliance News) - TomCo Energy PLC said Thursday its loss narrowed on a lack of impairments as it continues to secure further funding to develop and operate the business.

For the year ended September 30, pretax loss narrowed to GBP428,000 from GBP5.1 million the year prior. TomCo did not generate any revenue in either year.

Profit performance was helped by the lack of impairments in the year, compared to GBP4.6 million the year prior.

"During the financial year," TomCo Chairman Andrew Jones said, "the company announced that it had identified an oil shale extraction technology, proven from a technical feasibility perspective, which demonstrated the benefits and efficacy of using a process involving the use of radio frequency in the extraction of oil & gas from oil shale."

"The company believes that this relatively low-cost and environmentally benign disruptive technology has the potential to unlock TomCo's oil shale assets," Jones added. "As a result, the company formed TurboShale Inc to become the Company's technology arm, and in which JR Technologies LLC became a shareholder and TurboShale acquired the relevant patents for the RF technology and process from JRT."

"Subject to securing the necessary funding," Jones continued, "the company will seek to undertake a field test programme on its own Holliday block to seek to demonstrate the suitability of the RF technology to the recovery of oil & gas from its oil shale assets on a commercial basis. Should the RF technology be shown to be commercially viable, the company believes that there would potentially be additional licensing and royalty opportunities for the technology."

On Wednesday, TomCo said Christopher Brown had provided a further GBP100,000 unsecured loan to the firm to support working capital requirements. Brown - a former director of TomCo and major shareholder - issued the loan with an 8.0% per annum interest attached. This follows a similar GBP100,000 loan provided by Brown previously.

Following receipt of the loan, TomCo had GBP177,000 in cash. This is "sufficient" for its capital requirements until August.

Jones explained, however: "As such, the company will need to raise further funds to meet its working capital requirements and undertake its development plans. Whilst the Board remains confident of the company's ability to raise further funds, there can be no guarantee that the company will be able to secure the necessary funds or certainty as to the terms on which such funding will be available for its working capital and/or development plans."

Shares in TomCo were untraded at 2.00 pence.

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