9th Feb 2015 08:03
LONDON (Alliance News) - TomCo Energy PLC Monday said it has secured the first of the three major permits necessary to take the company's Holliday block in Utah into production.
The Utah Division of Oil, Gas and Mining has approved the company's Notice of Intention to Commence Large Mining Operations at the Holliday block.
However, last Thursday the company said it will not begin construction on the Holliday shale project in the US until its technology provider has finished constructing its Early Production System capsule, which has been postponed until the second half of 2016 due to the low oil price.
Red Leaf Resources Inc, which neighbours TomCo's project and is providing its technology to the company, is currently constructing the capsule, which allows companies to produce high quality liquid transportation fuels from oil shale more economically and in more environmentally friendly ways.
On Monday, TomCo said it must submit a reclamation surety to the Division of Oil, Gas and Mining before beginning any mining operations at the Holliday block, which means the company must provide guarantees about any land that is disturbed by mining operations being returned to its original state or an acceptable condition and providing financial guarantees.
"Receipt of this approval is an exciting milestone and a major step forward in the permitting process. We are working hard with the Utah State agencies and hope to receive our Ground Water Discharge permit and Construction permit soon. We remain committed to developing our Holliday block," said Chief Executive Paul Rankine.
TomCo shares were untraded Monday morning, last trading at 0.198 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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