Tomco Energy Share Discussion Threads

[vauch] 14/9/2021 07:42

And another round of samples has also been sent.

[rmart] 14/9/2021 07:40

The state's five oil refineries, all located in the Salt Lake City area, can process nearly 200,000 barrels of crude oil per calendar day.

[stuart little] 14/9/2021 07:33

There are 5 oil refineries in and around Salt Lake City, capable of processing 200,000 barrels a day. Just saying. We know Tom are talking to some.

[goulding1215] 14/9/2021 07:29

Here we go WTI. $71.03

[the diddymen] 14/9/2021 07:28

Although academic only Fenners, it is worth pointing out that there is no mention of the 740 miles to a Los Angeles refinery by road in the costing. Probably the nearest refinery.

No risk to reputation from gratuitous road miles for a 'major' then.

[fenners66] 14/9/2021 00:53

Totally coincidentally I have just been reading Warren Buffett's letter in some Berkshire Hathaway accounts...

"BERKSHIRE HATHAWAY INC.
ACQUISITION CRITERIA
We are eager to hear from principals or their representatives about businesses that meet all of the following criteria:

(1) Large purchases (at least $75 million of pre-tax earnings unless the business will fit into one of our existing units),
(2) Demonstrated consistent earning power (future projections are of no interest to us, nor are “turnaround221; situations),
(3) Businesses earning good returns on equity while employing little or no debt,
(4) Management in place (we can’t supply it),
(5) Simple businesses (if there’s lots of technology, we won’t understand it),
(6) An offering price (we don’t want to waste our time or that of the seller by talking, even preliminarily, about a transaction when price is unknown).

Given that criteria I guess they will not be making a bid any time soon....

[fenners66] 13/9/2021 23:06

To quantify the conservative $4 a barrel, that's on $110m

That FEED study , which was so well regarded by any potential lender, that the company has been asked to do another report by someone else, said +/- 25% !

Look at the cost of every multi year engineering project - HS2 was originally about £12bn I read today the latest estimate is £106bn.

We know that there are materials and wage inflation in the US at the moment so upwards of $137m would make sense.

So really $5 a barrel +

But what chance ?

[fenners66] 13/9/2021 22:57

Now where have we heard all that before ?
At a very conservative rate of interest finance would cost $4 a barrel, they have not built anything in their fantasy calcs for that, but hey they are fantasy calcs....

Any finance cost if it ever got done would likely to be on harsh terms.

They have a poor record of losses and value destruction, the owner of the tech has an even worse balance sheet.
The owner of the land went bust and the land has had no interest for 5 years.
So no track record, no collateral, massive dilution of the shares over the last few years.

No employees, no in house experience to get their hands dirty, potentially sole ownership of Greenfield , meaning they would have to pay top dollar to buy in any help from Valkor, whom they have already paid $1.5m to improve someone else's test plant(!)

Prepared to pay $300k just to have an option to buy land - time limited so worthless if they walk away or can't get finance sorted....

So in summary what lender would give generous or even market terms ?

It would have to be onerous terms...

Chances of it actually happening given the history above..... ?

[the diddymen] 13/9/2021 20:11

Lalaland stuff on the other thread at the mo. I think we are just working up to the '£2Bn valuation'. I hope that the sole employee is well insured.

[damac] 13/9/2021 19:18

Mikecoster,

With regards to building the 2nd 5k train to take total output to 10k per day, I’m led to believe they will use the same finance model as for the 1st.

[vauch] 13/9/2021 18:55

Ah ok thanks Busa

[busamitch] 13/9/2021 18:49

They tweeted old news yesterday. From the official account not the shareholder one. Odd.

Petroteq Energy Inc.
@PetroteqEnergy

[vauch] 13/9/2021 18:42

I know Rmart wont like it but im going to ask.
This was posted on the PQE LSE chat board. is this true?

Resumption of trading announced Today 10:30
Reference Twitter

[mikecoster] 13/9/2021 18:42

Neither does it take into account the upgrading to 10,000 bpd

[vauch] 13/9/2021 18:40

As sand is a waste product but can be sold it is 100 profit, extracting oil from the sand has the cost against it.

[ducky fuzz] 13/9/2021 18:22

Anyone know whether our oil is more profitable than sand or vice versa. DF

[jaynealex] 13/9/2021 18:21

That's correct Damac ...it doesn't take into account our multiple site licence possibilities

That's why any take out has to be defended and only accepted at a price that takes into account the future possibilities less a discount for getting your money early

[fenners66] 13/9/2021 18:16

goulding your mates seem to have ignored last years directors options over 14m shares at 0.6p.
Funnily enough only 10m of those are with current directors , so 4m must be ex-directors.

but since this years finals accounts period ends only weeks away , what will the options offering be this time around?

I know by the time the issued shares are 2bn+ it will seem a drop in the ocean , but 14 to (say) 28m is not really a drop in the ocean .....

[damac] 13/9/2021 17:46

Jaynealex, post #22357,

But as you correctly point out, that is only on one 5k plant.

[goulding1215] 13/9/2021 17:37

I have and they are in his clients portfolios.

[jaynealex] 13/9/2021 17:35

No ...what ever the total NPV of the project ..it has to be divided by the total shares in issue in Tomco

[goulding1215] 13/9/2021 17:32

But TOM own all of Greenfield, so those extra shares, if all warrants taken up, should not impact upon TOM’S overall value per share. Is that right?

[damac] 13/9/2021 17:08

jaynealex,

Currently 1,451,412,012 shares but....

1. Will definitely rise to 2,044,242,270 when Valkor take up their 29%.

2. Could possibly raise further to 2,748,817,910 if all outstanding warrants are taken up.

[damac] 13/9/2021 16:51

Vauch,

Yes, there are 2 further groups of warrants that expire in July 2022 & Nov. 2022. The point I was making with my previous post was that those warrants will expire in February if not taken up. So it will be a case of either some money coming into Tomco in February from warrants OR potentially up to 79.6m shares not being added to the shares issued in the company total.


July 2022 expiry...

Turner Pope - 4,125,000 warrants at an exercise price of 0.4p - Potential value to Tomco = £16,500

Whoever took part in the placing - 187,500,000 warrants at an exercise price of 0.8p - Potential value to Tomco = £1,500,000



November 2022 expiry...

Whoever took part in the placing - 388,888,888 warrants at an exercise price of 0.9p - Potential value to Tomco = £3,500,000

Novum Securities - 46,666,666 warrants at an exercise price of 0.45p - Potential value to Tomco = £210,000