Tomco Energy Share Discussion Threads

[thesageofsaint] 06/9/2021 20:49

You miss the reality. If you had ever tried to raise capital you would know just how difficult it is. Proper businesses that have established revenue streams, functioning teams and are profitable have significant challenge in acquiring capital at a tenth of this level. Just having a good idea is not an investable proposition. I would argue of course that they do not even have that, but even if they did, you are expecting a financier to commit to $110m of capital, to a business that has no track record, no employees, a history of destroying shareholder value, no IP ownership ... that you and others think this is realistic is the real head scratch. All I can tell you is that you are going to lose all your money unless you quickly start to understand some very basic business realities.

[damac] 06/9/2021 20:45

It would be paid on upload from site probably but at whatever agreed price in the agreement, which will most likely be oil index linked.

That's why its called an 'Off-take agreement', the buyer has agreed to take it.

[ducky fuzz] 06/9/2021 20:42

Do they pay in advance .. or pay a deposit .. obviously if they changed their mind after the oil were produced we'd be screwed.

[damac] 06/9/2021 20:39

Ducky,

Re the off-take agreements being discussed (note the plural as the LSE poster only mentions 1), there is a question that I intend asking at the AGM.

What I can say for sure is that ALL refineries work an order book several years in advance so that they can secure a continuous supply of good quality oil to process. On that basis, I am expecting heads of terms to be agreed on off-take of oil and sand produced, well in advance of the the plant producing.

From a Greenfield perspective also, they cannot fire up the plant, produce oil then temporarily shut the plant down because the storage has maxed out and they don't have any off-take agreements in place yet, it's not good business planning.

[goulding1215] 06/9/2021 20:23

That post by Talais from LSE, Definitely post of the day, by an informed intelligent poster.

The other post of the day was by fishy

Fishyneck Sep '21 - 15:25 - 21950 of 21972
0 5 0
Personally, if anyone, I think the appointment of Coby Crawford to the TOM board (was in one of the Proactive vids) would make a great deal of sense. Coby is Valkors CTO (chief technical officer for Ducky :-) ). Whilst SB would be a figure head appointment, Coby would add some more knowhow and technical credibility to Tomco.

That would be perfect if it were to happen. I would disagree when fn says we may not need anyone from Valkor on the BOD. I would disagree on 3 ppoints:-

1. TOM has such a bad track record, appointing an expert engineer with experience of CORT would give great credibility to TOM, which it currently lacks.

2.If Stephen Byle would be a figure Head appointment,it would add more credibility to the BoD in the City.

3. TOM’s future lies in Utah, that is where the office should be positioned. Then passport to the TSX, where Stephen Byle would be known and adds credibility to TOM when, or if listed in CANADA.


These appointments or similar, is exactly what TOM needs to climb out of the mire where it currently wallows. Perhaps the BOD have surprises for TOM shareholders at the AGM.

[thesageofsaint] 06/9/2021 19:40

Spot on. It shows such a lack of basic understanding of life as well as business to believe any right minded investor will part with a dime to this sham of a company let alone $110m. They really have not got a clue. The sheer breadth of skills and capacity needed to deliver such a programme is immense. Tens of people required and these cannot just be contracted. There needs to be technical, finance, programme and project managers, Human Resources, legal etc etc. It is fanciful beyond belief actually. What is obvious is that those invested have no real life experience of any significant business or programme of works. Like children being read a fairy tale each evening. Cobblers can make puppets that come alive and little men with unpronounceable names can spin straw to gold. Going to be entertaining to watch.

[the diddymen] 06/9/2021 19:10

Go to the other thread if you want to read the full post. It is from Crowno who registered on LSE on 4 Sept and has made two related posts.

"Posted on LSE

Hey, new here well new to signing up anyway always reading from afar. I would have messaged earlier but LSE didn't seem to want me to post anything for a few days lol. I posted this on the QFI board as a response about Tomco."

Hours before the AGM this smacks of desparation. The post draws attention to a note in the RNS about potential financing. Just a guess but the name of the potential backer will not be named at the AGM for commercial reasons etc.

The poster is predicating the perceived problem to the small market cap of TOM. Maybe that is an issue but it is a side issue. TOM has to convince an investor to part with $110m or whatever to finance the project. TOM have one effective employee John Potter. How is a one man band going to deal with the design sign off, the administration of the funds, the accounting of the funds, the project management, the legal issues re development, the incoming claims in a litigous society etc etc. Unless these issues are squared off - and that requires a lot of imagination - it is not going to happen in the time scale.

If the BoD were so sure of the project they would have invested in TOM by now, but they have kept their hands in their pockets.

[ducky fuzz] 06/9/2021 18:45

Hi Fishy .. I know they are in discussions .. I wanted to know if they get orders first then produce it. Or produce it and then look for buyers.

Is there a set oil price or do we negotiate a price.

Who pays for delivery.

[fishyneck] 06/9/2021 18:34

Ducky, it was in the last RNS, damac pointed you to it earlier."Greenfield is in advanced discussions with potential off-takers of both oil and sand from the Site"It's been mainly overlooked so far imo

[ducky fuzz] 06/9/2021 18:26

A good question at the AGM is how are they going to sell what they produce.
Do they get orders for the oil first.

[talais] 06/9/2021 18:12

Posted on LSEHey, new here well new to signing up anyway always reading from afar. I would have messaged earlier but LSE didn't seem to want me to post anything for a few days lol. I posted this on the QFI board as a response about Tomco.I've heard many be very unsure on Tomco's position regarding their ability to build a plant or ascertain the land for the plant in the first place given they only have around a 7 million market cap. But I am not sure if anyone is aware of the possible off-take deal they are currently in negotiations with. I saw this on an article from PI on the 01/09/2021, they quoted;"TomCo noted that Greenfield is in advanced talks over a potential off-take deal related to the commercial-scale project, and, its due diligence for the site acquisition is substantially complete."www.proactiveinvestors.co.uk/companies/amp/news/959142If this is the case then it seems Tomco could have someone who is either willing to fund Tomco's venture in Greenfield as they have a worthwhile investment in the oil they could produce Or that they are simply seen a buyer of Tomco's oil prior to the building of the plant allowing Tomco to show other possible funders that they have a buyer already in place which would considerably strengthen their negations on applying for funding. As to who this potential off-take deal is with is anyones guess but I'd hope it would be with someone big.If the above is the case then it seems Tomco is probably in a better position than many think they are and that their small market cap might not be as much of an issue as people believe. But as they say the future will tell if we are right or wrong. I just thought id post this here as anyone ive seen question or comment on Tomco's ability for funding have never pointed towards this potential off-take deal they are in the works with. In addition it would be slightly odd that Tomco would throw away another $100,000 if they didnt have some sort of relatively solid assurances going forward, especially considering their small market cap and limited funds, as 100k its a relatively sizable chunk of money for them. I suppose with Tomco not being the most forthcoming or outspoken company it can be easy to assume they have no leg to stand on.All the above aside I do hope all goes well for all three QFI, TOM and PQE.

[fishyneck] 06/9/2021 18:01

It appears though that the delay was due to extra DD required for the lenders, reserve report etc. Hopefully no further requests are made and the extra few weeks will see the deal done.

[fishyneck] 06/9/2021 17:55

It's a reasonable question. I'll try and get you the answer.

[fenners66] 06/9/2021 17:50

I guess since there was zero response , no one will be asking my question at the AGM?

What happens if financing /land deal is not done by the end of the month?

[thesageofsaint] 06/9/2021 17:05

I know but I keep on trying.

[damac] 06/9/2021 16:46

Fishy,

Thankfully I cannot see his posts you replied to. Your last post reminded me of something I read the other day, not my work but so very apt.....


"The worst waste of time is arguing with the fool and fanatic who does not care about truth or reality, but only the victory of his beliefs and illusions. Never waste time on arguments that don't make sense... There are people who, no matter how much evidence we present to them, are not in the capacity to understand, and others are blinded by ego, hatred and resentment, and all they want is to be right even if they are not.

When ignorance screams, intelligence is silent. Your peace and quiet are worth more."


P.S. Look forward to sharing a few pints on Wednesday ;o)

[thesageofsaint] 06/9/2021 16:25

Thanks Yoda!

[ducky fuzz] 06/9/2021 16:24

Boy that's deep Fishy.

[fishyneck] 06/9/2021 16:22

I stopped explaining myself when I realised other people only understand from their level of perception.

[thesageofsaint] 06/9/2021 16:13

Don't mean to be pedantic but it is spelt vol-au-vent. No need for special catering, you have a professional caterer as your CEO. He will be bringing the cakes, pity he knows f' all about oil exploration and extraction. Doh!

[thesageofsaint] 06/9/2021 16:09

All right your highness (always want to show respect when speaking to such auspicious and reverence deserving types), you need to start shepherding the flock a little better. You have their ear and trust but you still are unwilling to deliver the truths they need to hear. But the sheep have always sought succour in the shepherd only to ultimately find it is he who leads them to the slaughterhouse. The only funding that is accessible is selling more confetti to the likes of SL, DF and gormless 1215. But, time will be the ultimate arbiter and ultimately it is a bag of nails and will be valued as such. When you go to the AGM, can you take a quick photo for me. I like seeing the happy smiling faces of a care in the community annual summer trip to the zoo.

[ducky fuzz] 06/9/2021 16:00

What in my Spartacus outfit ..

[hotfinance14] 06/9/2021 15:55

Ducky...if you could of made it to the AGM would you have attended in fancydress ?

[goulding1215] 06/9/2021 15:49

Yes and no, fn, I think it will give the BoD credibility in the City, TXS and US market.

However, as you say, let us wait and see what will happen at the AGM.