Tomco Energy Share Discussion Threads

[hotfinance14] 27/4/2021 07:28

Great news,

Hopefully the oil samples have now been sent to Quadrise,

[goulding1215] 27/4/2021 07:26

Now need to know production rates, remembering that Valkor are a successful engineering company.

[jaynealex] 27/4/2021 07:19

Short and sweet

[vauch] 27/4/2021 07:11

Short RNS without the faff.
So we are at the start, two weeks to build up production then the full scale run

[ajj2003] 27/4/2021 07:05

Game on ;)

[busamitch] 27/4/2021 07:01

"As announced on 1 April 2021, Greenfield identified certain additional enhancements that were required to be made to the POSP to allow for a more efficient and optimised operation. Greenfield is pleased to report that this additional equipment has now been successfully installed and tested, and the POSP is again operational."

[lopodop] 26/4/2021 18:10

IT is always amusing to note the boasting that occurs frequently here!

Also concerning that so many entrust so much to a few unknown characters as in this case.

The more one looks at this investment, the more evidence there is to persuade investors to get out or stay clear

[stuart little] 26/4/2021 17:00

"No POSP production...." let's pick this up later in the week.

[thesageofsaint] 26/4/2021 16:16

There will be not debt access for the ludicrous idea of multi thousand BOPD nonsense. It will never happen. The 'trial' will end in a characteristically ignominious way. Some obfuscating drivel and then a hiatus and then a 'new plan Rodney'. Equity fund raise of a couple of billion shares to get you close to 4 billion and the next sorry chapter begins. No POSP production, get over yourselves. I Remember when I first owned these. It was in 2018 and I was careful to not go over the 3% stake and held @750k when they had just 25 million shares. Think about that! From 25m to 1.6b in 3 years. Over 60 times dilution. I was paying 3p. They would have to be today £2 for me to achieve parity. This sham has only one certainty and that is it will raise and raise, it is it raison d'etre.

[damac] 26/4/2021 14:44

From Final Results RNS on 18th February 2021 .......


"As at 9th February 2021, the Company had cash of approximately GBP2.45 million and management's cash flow forecasts indicate that the Group has sufficient funds to meet its currently foreseeable working capital requirements through to at least the end of June 2022 as detailed further below under Going Concern and in Note 1.1 to the financial statements."



Going Concern

The Directors have prepared cash flow forecasts for the period to 30 June 2022. Those forecasts, which include any capital expenditure committed at the date of this report, indicate that the Group has sufficient resources to continue in operational existence for the foreseeable future,

It is possible that additional capital expenditure beyond that committed at the date of this report will be necessary in order to maximise the opportunities presented by TurboShale and Greenfield. Any such additional expenditure would be subject to funding, in whole or in part, via additional debt or equity or a combination of both.

The Directors note that COVID-19 has had a significant negative impact on the global economy and oil prices have been volatile, which may mean it is harder to secure additional funding than it has historically been. Notwithstanding this, the Directors have a reasonable expectation based on successful recent fundraisings, that they can secure any additional funding that might be required.



1.1 Basis of preparation and going concern

The Group's financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and International Financial Reporting Interpretations Committee ("IFRIC") interpretations and with those parts of the Isle of Man Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historic cost convention.

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates. Details of the Group's significant accounting judgments are set out in these financial statements and include:



Judgements

- Impairment indicator assessment on intangible assets and property, plant and equipment used in exploration and evaluation activities

The Directors consider that tangible and intangible assets employed in exploration and evaluation activities form part of a single cash generating unit for the purposes of impairment assessment. In determining whether indicators of impairment on such assets existed judgment was required. The directors have considered the remaining licence term and standing, future plans for exploration, the measured resources within the mineral leases owned by the Company; and the likelihood of commercially viable extraction technology being developed and sufficient funding being available to the Company to develop and exploit such technology. The Board concluded that no impairment indicator existed as at 30 September 2020. Refer to Note 8.

- Internally generated development assets

Greenfield has incurred expenditure on researching and developing the design and operation of a pilot plant and processes that is not of a scale economically feasible for commercial production. Judgement is required In determining what constitutes research expenditure, to be expensed in profit and loss, and what constitutes development expenditure that meets the criteria set out in IAS 38, which must be capitalised. Qualifying expenditure is capitalised from the point at which Greenfield's board are satisfied as to the technical feasibility of the production processes. The board have deemed that this was achieved when the preliminary results of the Pre-Feed study were released, which indicated the use of the Oil Sands Technology was likely to be economically viable. Judgements on these matters affect the Group's share of Greenfield's net assets and profits that are recognised under the equity method.

- Joint arrangements

In assessing whether the Group is party to a joint arrangement under IFRS 11, the Group considers whether decisions about relevant activities of the investee entity require the unanimous consent of the investors ("joint control"). Having established the existence of joint control, judgement is required to establish whether the structure of the arrangement, the contractual terms or other facts and circumstances give the parties to the arrangement rights to the assets and obligations for the liabilities of the investee entity. In those circumstances, the entity is a joint operation. Having evaluated the matter, the Group has determined that the parties to the arrangement.do not have rights to the assets and obligations of the investee entity and therefore the joint arrangement is a joint venture.

Judgement is also required concerning the value at which non-cash assets contributed by the joint venture partners are recognised. The Group has contributed cash assets of US$1.625 million. In the judgement of the Directors, the value of intellectual property and undertakings to deliver future services provided by Valkor matched the value of the cash contributions made by the Group


Estimates

- Share based payments

Estimates were required in determining the fair value of share options and warrants granted in the year including future share price volatility and the instrument life. Volatility is estimated using TomCo's historic share prices for a period of time that matches the exercise period of the warrant or option. This assumes that historic share price volatility is the best estimate of future volatility. The Black-Scholes model is used for valuing both options and warrants. Estimates are also made of the likely time of exercise of the options or warrants.

The Group has consistently applied all applicable accounting standards.


Going concern

At 9(th) February 2021, the Group had cash of approximately GBP2.45 million.

The Directors have prepared cash flow forecasts for the period to 30 June 2022. Under the forecasts, the Group plans to engage a third-party engineering evaluation of a commercial scale plant design based on the Petroteq oil recovery system and potentially secure a site on which to build a commercial scale plant. The forecasts indicate that the Group has sufficient funds to complete these tasks and to ensure its ability to continue in operational existence for the foreseeable future and at least until 30 June 2022. On this basis, the Directors consider it appropriate to prepare the financial statements on the going concern basis.

Further funding may be required if the Directors decide to explore the opportunity to develop a commercial scale oil sands plant or to further advance the RF technology.

The Directors note that COVID-19 has had a significant negative impact on the global economy and oil prices have been volatile, which may mean it is harder to secure additional funding than it has historically been. Notwithstanding this, the Directors have a reasonable expectation that they can secure additional funding, based on recent successful fundraisings, should it be required.

[rmart] 26/4/2021 12:56

It is not scare tactics Stu,

They raised £3.5m.

£400k was immediately going to Greenfield.

£1.5m was to be retained for the potential site.

£1.3m for general working cap.

So, the schedule has run over again, switch on was January, next week we are in May. That is a 4 month delay (unaccounted for), they needed new equipment installing for which no cost has been announced (unaccounted for), JP backwards and forwards to Utah unaccounted for), New Director wages (unaccounted for).

The above is a snapshot of what we know. If you are looking to invest these are valid questions, If you are already in you can see it as scare tactics if you like but that is plain wrong.

[stuart little] 26/4/2021 12:44

Like I said earlier I am hopeful of news this week. With oil prices high any continuous production will put some decent revenue into greenfield pot. Hopefully some byproduct revenue too. I know this doesn't directly impact us but from the last accounts Tomco were in no desperate need for funding. To say so now is general AIM scare tactics. Imo.

[rmart] 26/4/2021 12:40

oh yes, no chance of that. To much money required. However, with the constant delays, looking like we are moving into May with no news of switch on yet, how much of the last raise do they have left? How much extra have they had to spend on the latest improvements? Will they need more wages capital.

[stuart little] 26/4/2021 12:29

I'm talking about the suggestion that greenfield will fund the next stage through a Tomco placing. Utterly stupid.

[rmart] 26/4/2021 12:21

I would expect if you could go back a number of months and suggest Tom would do 3 placings each one at over 100% dilution you would say that was loopy too, but they did.

One at 107% dilution
One at 136% dilution
One at 115% dilution

All within a 1yr period ! Imagine you were holding before those 3 events !

[stuart little] 26/4/2021 11:14

Clearly they will have an idea about the funding strategy going forwards. Anyone who thinks it will come via a Tomco placing us quite frankly loopy! Goulding, I'm happy to see what this week brings. Prudent to run the plant for a few days before announcing anything. I'm expecting an update on progress and initial production this week.

[goulding1215] 26/4/2021 10:59

Why not ask our super CEO, Stu. I am not sure if you will get an answer.

[stuart little] 26/4/2021 10:29

I believe some equity in greenfield could be used in the next funding round. I have no issue with that. If you think the next phase funding will come from tomco dilution then you are mistaken, I mean that would be a monumental raise for little Tommy!

[thesageofsaint] 26/4/2021 10:18

I may have missed something, but where do you get the impression that Valkor is funding its overheads? I do not believe that any open source detail states this. The contract is between Greenfield and Valkor. The money that greenfield has is all from TOM and unless these is explicit information available to the contrary, Greenfield is paying ALL overheads. You also do not know, as there is no obligation to inform the market, how much more TOM has seeded into Greenfield, but I bet it is significantly more than the opening funding. The daily overheads continue irrespective of progress and so the delays will have and continued to consume your money. Make no mistake, and you are naive to think otherwise, the only funding that will be available is equity funding. You show a lack of business experience if you think this venture will obtain debt funding, not a chance. Dilution on its way.

[stuart little] 26/4/2021 09:33

With Valkor funding the day to day running of things in regards to personnel on site the extra weeks it has taken hasn't cost Tomco anything, baring working capital of the company obviously. Valkor happy to proceed at a sensible rate. I don't have endless patience but until I hear otherwise this project is still progressing to the end game that will multiply the share price here.

[lopodop] 26/4/2021 09:28

SL it would be useful to sight some actual expenditure numbers from Greenfield to understand how the TOM funds are being utilised.
Does JP deal with the account side of things?
With the delays actual spend must be well ahead of budgets - how much?

[goulding1215] 26/4/2021 09:25

Good one that for Damac.