Tomco Energy (NCS)- the next Cadence?

http://www.tomcoenergy.com/

http://www.timesonline.co.uk/article/0,,748-2516894.html


Growth Strategy

It is a simple fact. The United States needs to find additional domestic oil reserves.
TomCo realizes this fact and believes that there are numerous opportunities in the smaller conventional oil production fields throughout the United States which its experienced management can exploit.

TomCo is currently working to develop strategic alliances and joint ventures with current oil producers throughout the United States in order to expand their asset base and revenues from conventional oil production.

TomCo will invest in oil properties with fully engineered, proven, developed producing wells (PDPS) and proven undeveloped locations (PUDS). These smaller acquisitions can be obtained at prices that would give Tomco significant profit potential.

TomCo Energy will hold their oil shale leases in reserve until production is technologically and economically feasible.


The Company's strategy relating to the TomCo Leases is set out in paragraph 5.6
below. On completion of the Acquisition the Board intends to apply the net
proceeds of the Placing to acquire and, where appropriate, develop conventional
oil assets in the US, concentrating principally on shallow oil wells, primarily
by leveraging the expertise and extensive industry contacts of Howard Crosby and
John Ryan. The Board intends to focus initially on oil assets, rather than gas,
for cashflow purposes.

* The Group will participate principally as a non-operating, minority
investor in prospects operated by industry partners known to the Board;
* The Group will focus initially on shallow oil prospects, being prospects
above 5,000 feet, in the continental USA, with primary focus on established
oil producing provinces in Texas, Oklahoma, Louisiana, New Mexico and
Wyoming;
* Where the Group invests in non-producing wells, the Board intends to
invest in areas with proven wells nearby, adjacent to existing productive
wells, or with other geologic or seismic indications that the risks of the prospect are relatively low;

* The Group's target investment price for producing oil assets is
approximately US$12 to US$15 per barrel, and funding costs for non-producing
assets are intended to be approximately US$5 to US$7 per barrel;
* The Group will invest primarily where the operator of the well, the
subject of the investment, has invested in the project; and
* Individual investments in proven undeveloped wells are unlikely to
exceed $100,000, thus diluting the Group's risk profile.



Application will be made for the Enlarged Share Capital to be admitted to AIM.
Subject to Completion of the Acquisition, Admission is expected to take place,
and dealings in the Enlarged Share Capital commence, on 16 January 2007.


None of this information is intended in any way as advice. Do your own research!