22nd Feb 2007 07:01
TomCo Energy PLC22 February 2007 TOMCO ENERGY PLC ("TomCo" or "the Company") PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2006 TomCo (TOM.L), the oil mining and production company, today announces itsPreliminary Results for the year ended 30 September 2006. HIGHLIGHTS •The Company, previously known as Netcentric Systems Plc, operated as a cash shell until the completion of the reverse acquisition of The Oil Mining Company Inc on 16 January 2007. £€1,781,200 was raised through the placing of 71.28 million new ordinary shares. •Proceeds to be used as working capital and to enable the Company to investigate and take advantage of potential investment opportunities. •The Company's shares were re-admitted to trading on AIM on 16 January 2007. •Howard Crosby, John Ryan and Paul Hughes were appointed to the Board. •The subsequent acquisition of a 40 % working interest in the Flusche Oil Well, and 20 % working interest in a five well drilling program in Overton and Fentress counties in the State of Tennessee. Stephen Komlosy, Executive Chairman of TomCo, commented: "On 16 January 2007, Netcentric Systems plc completed the reverse acquisition ofThe Oil Mining Company Inc. which owns two separate groups of mineral leases ona total holding of 2,900 acres of oil shale prospects in the state of Utah, USA.SRK, the independent firm of mining consultants reporting on the acquiredleases, has estimated these leased oil shale claims to contain some 230 millionbarrels of oil. In conjunction with the acquisition, the Company raised a gross total of£1,781,200 through the placing of 71.28 million new ordinary shares, at aplacing price of 2.5 pence, which will be used as working capital and also toenable the Company to investigate and take advantage of potential investmentopportunities, at the same time the Company changed its name to TomCo Energy Plcand was re-admitted to trading on AIM. On this date John Ryan, the president ofThe Oil Mining Company Inc., was appointed to our Board as Commercial Director. The acquisition and the recruitment of John Ryan followed the earlierappointment of Howard Crosby to the Board in March 2006, whose purchase of 29.9%of the Company, from PSG Solutions Plc, heralded a change in focus to the energyindustry in regard to our search for new business for the Company. Howard'ssuccess with US based oil and gas and resource companies includes CadenceResources Inc an oil and gas company, which, during the time he was presidentand John Ryan was Chief Financial Officer, increased from a market value ofunder $1million to $450million, over the five years from 2001 to 2006. Between April and August 2006, the Company undertook a placing to raise workingcapital and to fund the initial costs of a reverse acquisition. This placingraised $532,000 at a price of 2 US cents per ordinary share. Although there has been recent advances in the technology to extract oil fromoil shale, US oil shale is not yet being commercially exploited on any scale,but your Board believes that this situation will change over the next six yearsand that the huge strategic and commercial pressures together with currentsupply anxiety will, in this time frame, induce the USA to create an oil shaleindustry similar to the way the Canadian oil tar sands industry was created. The Board's strategy for the future is to hold the oil shale assets in reserveuntil such time as their exploitation becomes commercially and economicallyviable, whilst creating an investment portfolio of conventional North Americanbased shallow producing oil assets and proven undeveloped wells utilising theexpertise and industry contacts of Howard Crosby and John Ryan. In accordancewith this plan we have already announced our 40% interest in Flusche Well inWichita County, Texas and a 20% interest in a five well drilling programme inOverton and Fentress counties in Tennessee and we expect to announce moreinvestments shortly. Shareholders may be interested to view the Company's web site,www.tomcoenergy.com which contains a summary of our current strategy ofparticipation in oil producing wells and prospects and contains detailedinformation about US oil shale and related interesting links to US Governmentsites, the Company's share price (twenty minute delay) together with pressarticles and Company announcements as they are made." For further information, please contact: TomCo Energy PlcStephen Komlosy Tel: (020) 7808 4857 Strand Partners LimitedSimon Raggett Tel: (020) 7409 3494Warren PearceThomas Lockyer Bankside Consultants Tel: (020) 7367 8888Simon RothschildLouise Mason TomCo Energy Plc ("TomCo or "the Company") PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2006 CHAIRMAN'S STATEMENT The appointment of Howard Crosby to our Board in March this year, after hepurchased 29.9% of the Company from PSG Solutions Plc, heralded a change in ourfocus in respect to the search for a new business for the Company. Howard'ssuccess with US based oil and gas and resource companies has guided us in thisdirection for a suitable "reverse" takeover where we can, in the future, takegreat advantage from his superior knowledge and expertise. As a result, we arenow in the "due diligence" stage of an acquisition in the US energy sector whichwe are expecting to close before Christmas. Owing to the change of the Stock Exchange rules with regard to "investment" or"shell" companies like Netcentric (Rule 15), which resulted in the suspensionfrom trading of the Company's shares on AIM on 30 June 2006, there is greatpressure on the Board to complete an acquisition transaction before the end ofthe year so that our AIM facility will not be cancelled on 31 December 2006. During the year the two non-executive directors Emanuel Mond and Paul Hughesstepped down from the Board when Howard Crosby was appointed and again I wouldlike to thank them both for their wise counsel and help during the whole periodthat they have been directors of the Company. Paul Hughes was subsequentlyreappointed to the board on 31st October 2006 to help guide the company throughits new plans. Stephen KomlosyChairman21 December 2006 TOMCO ENERGY PLCINCOME STATEMENTFOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2006 2006 2005 £'000 £'000 -------- --------Continuing operations Revenue - - Cost of sales - - -------- --------Gross profit - - Administrative expenses (131) (83) -------- --------Operating loss (131) (83) Interest receivable and similar income 4 6 -------- --------Loss before taxation (127) (77) Taxation - - -------- --------Loss for the year (127) (77) -------- --------Attributable to equity holders of thecompany (127) (77) EARNINGS PER SHARE 2006 2005 -------- -------- Pence per Pence per share share -------- --------From continuing and discontinuedoperationsBasic (0.09) (0.06)Diluted (0.09) (0.06) From continuing operationsBasic (0.09) (0.06)Diluted (0.09) (0.06) BALANCE SHEETAS AT 30 SEPTEMBER 2006 2006 2005 £'000 £'000 -------- --------ASSETSNon current assetsProperty, plant and equipment 2 -Available for sale investments 94 - -------- -------- 96 - -------- --------Current assetsTrade and other receivables 86 99Cash and cash equivalents 83 3 -------- -------- 169 102 -------- --------LIABILITIESCurrent liabilitiesTrade and other payables (47) (28) -------- -------- (47) (28) -------- --------Net current assets 122 74 -------- -------- -------- --------Net assets 218 74 -------- --------SHAREHOLDERS' EQUITYShare capital 832 699Share premium account 188 50Retained earnings (802) (675) -------- --------Total equity 218 74 -------- -------- CASH FLOW STATEMENTFOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2006 2006 2005 £'000 £'000 -------- --------Cash flows from operating activitiesCash generated from operations (99) (165)Interest received 4 6 -------- --------Net cash used operating activities (95) (159) -------- -------- Cash flows from investing activitiesPurchase of equipment (2) -Purchase of investments (94) - -------- --------Net cash used in investing activities (96) - -------- -------- Cash flows from financing activitiesIssue of share capital 271 - Net increase/(decrease) in cash and cash equivalents 80 (159) Cash and cash equivalents at beginning of financialperiod 3 162 Cash and cash equivalents at end of financial -------- --------period 83 3 -------- -------- Significant non cash transactions: The loan outstanding from Coolcharm Gold Mining Company Limited of £94,214 wasrepayable on demand. On 20 March 2006 the loan was duly settled in full by theissue of 471,070 Ordinary 0.0001p shares at 20p per share in accordance with theterms of the original loan agreement. NOTES The figures set out above are derived from the audited accounts of TomCo EnergyPlc for the year ended 30 September 2006. The 2006 accounts will be sent toshareholders shortly. The Company's financial statements have been prepared in accordance withInternational Financial Reporting Standards (IFRS) and International FinancialReporting Interpretations Committee (IFRIC) interpretations endorsed by theEuropean Union (EU) and with those parts of the Companies Act 1931 to 2004applicable to companies reporting under IFRS. This is the Company's first financial statements prepared under IFRS andtherefore, IFRS 1 'First-time Adoption of International Financial ReportingStandards' has been applied. The last financial statements that were preparedunder UK Generally Accepted Accounting Principles (UK GAAP) were for the yearended 30 September 2005. The financial information contained in this announcement does not constitutefull accounts within the meaning of section 254 of the Companies Act 1985 andare not for the purposes of Section 240 of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Tomco Energy