5th Feb 2015 13:17
LONDON (Alliance News) - TomCo Energy PLC shares fell sharply on Thursday after it 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.
TomCo shares were down 17.2% to 0.273 pence per share on Thursday afternoon.
Red Leaf Resources Inc, which neighbours TomCo's project and is providing its technology to the company, released a statement regarding its Early Production System capsule which is currently being constructed, which said Red Leaf would postpone the completion of the capsule until the second half of 2016 due to the current oil price.
The capsule is Red Leaf's technology that allows companies to produce high quality liquid transportation fuels from oil shale more economically and in more environmentally friendly ways.
TomCo said it will only progress with commercial-scale construction on its Holliday Block once the results of Red Leaf's capsule are known.
TomCo said a public consultation regarding the company's ground water discharge permit for its assets in the Uinta Basin of Utah in the US, has been concluded and only received one objection. The objection came from Living Rivers, an environmental group that promotes river restoration, and TomCo said it is working with the Utah Division of Water Quality in drafting up a response to the objection.
On Tuesday, TomCo said it had settled an objection made by Living Rivers for the large mining permit for its Holliday shale gas project in Utah, and is confident of settling the ground water discharge permit objection, a spokesman for the company told Alliance News.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
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