Tomco Energy Share Discussion Threads

[fenners66] 14/9/2021 21:37

"rmart
14 Sep '21 - 13:56 - 12359 of 12371

"you know we can also sell sand which makes the oil production cost zero, you know the oil is a saleable commodity and you can add up 5000 x probably an equivalent of $100+ per barrel of oil based on todays price and the sand element."

"I will await the completion of the first 10% of tar sands in the next 2 weeks or so"



Oil at today's price with a cost of zero and a sale price of $100 / barrel !
Today's price is about $71 a barrel.

Your maths is flawed.
The value of sand is quoted pre-delivery and is to come off an estimated cost:

"operating costs of approximately US$22 per barrel of oil produced for a 5,000 bopd plant operating 24 hours a day, 360 days a year, before corporate costs, SG&A costs and royalty fees" - FEED study RNS "based on valid assumptions and in line with industry norms."


The optimistic (not proven) guestimate was $22/barrel.
But the estimate of the POSP plant was for 2 shifts at 500bpd.

Show a link to a statement of what was Actually produced per shift as the latest figures allude to 3 barrels a DAY.

So increase the plant size by 10x and you get 30 barrels a day..... clearly those costs would never work at that.

But also as discussed before its incredibly stated as 360 days a year , that might be an industry norm for a pump in Texas but this plant has to be fed and maintained. The sand has to be mined.

Add in finance cost based upon the history of Tar Sands and no collateral.
Theirs was 15% + warrants
Even take off 1 % for a base rate move since then....

14% of $110m = $15.4m
Factor that into your fantasy calcs.



You now say that the 10% Will be paid in 2 weeks , why?
Why have waited an extra month then?

It was agreed before the end of August, by all discussing here that the only justification for paying 10% of the land was having a guarantee of funding the plant otherwise it could be just a wasted $2m on a gamble that funding is to be secured.

Now its suggested that the funding will not happen until late in the year , you now declare that spending $2m first is fine.
With no guarantees.

we shall see.....

[fenners66] 14/9/2021 21:08

The ignorance of accounting principles of some of the other thread....

jaynealex
14 Sep '21 - 18:14 - 22408 of 22415

"Ducky once you have bookable reserves ..."

jaynealex
14 Sep '21 - 18:16 - 22410 of 22415

"It's like having cash on the balance sheet"

NO it isn't.

Fortunately johnpayne520
14 Sep '21 - 16:40 - 22399 of 22415 tried to correct their understanding , but seems that did not work as jaynealex still posted that misunderstanding afterwards.

Shows you cannot do too much helping them understand....

johnpayne520
"According to the Securities Exchange and Commission (SEC), oil companies are required to report these reserves to investors through supplemental information to the financial statements.

2 It is important to note oil still in the ground is not considered an asset until it is extracted and produced. Once the oil is produced, oil companies generally list what isn't sold as products and merchandise inventory."


To translate

Oil in the ground is NOT an accounting asset.
It CANNOT be added to the balance sheet.
What is an asset is the cost of the license and exploration actually spent and unamortised.

In other words in order to get a value on the balance sheet you have to find some cash and spend it.

[busamitch] 14/9/2021 19:51

Vauch, re barrel/mass conversions, follow the Duck.

[the diddymen] 14/9/2021 19:29

The other side of the story:

A broker could issue a note on Tom today , labelling it speculative

The note could lay out all the background , the recent testing , identify we own greenfield and the multi site licences for the new extraction method etc etc

It would then walk potential investors through the project milestones and their potential impact on share price ...so

1) 1 employee with a degree in catering
2) A FEED of unknown quality
3) Enough cash (possibly)to either purchase the 10% deposit or pay the professionals/wages
4) An MD with a recent financial hiccough.
5) A low grade shareholder base
6) No capacity to deal with incoming problems
7) $110m to raise to develop a plant

What could go wrong?

[ducky fuzz] 14/9/2021 18:28

If correct sounds very exciting.

[jaynealex] 14/9/2021 18:19

Ducky the reserves are there , we'll have a report when the 10% deposit is paid as the finance providers want it as part of due diligence

Then they're bookable once it's certain we can extract them which Damac advises is on full approval of finance for the plant

[jaynealex] 14/9/2021 18:17

Many investors spot shares with SPs below cash or reserve values and buy

[jaynealex] 14/9/2021 18:16

It's like having cash on the balance sheet

Damac's point about they're only bookable after the 100% finance is agreed relates to they're only bookable once their is a proven extraction method

[ducky fuzz] 14/9/2021 18:16

Hi jay .. but is that happening likely.

[jaynealex] 14/9/2021 18:14

Ducky once you have bookable reserves , their value divided by the number of shares gives a base share price for the shares

[ducky fuzz] 14/9/2021 17:39

OK damac .. have read it twice BUT it doesn't say how this converts to a definite higher share price. DF

[talais] 14/9/2021 17:31

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[talais] 14/9/2021 17:29

https://twitter.com/QFIPLC/status/1437783222721581057?s=20

[ducky fuzz] 14/9/2021 17:02

Thanks damac ..

[damac] 14/9/2021 17:00

Ducky, some bedtime reading for you ;o ....

[ducky fuzz] 14/9/2021 16:47

Thanks jp ..

V .. How on earth would I know that.

So at 3 bucks that's 150 million dollars. So how does this affect our market cap / value please.

[vauch] 14/9/2021 16:41

Oh ducky you are a tease. bookable in ground will be 3 to 5 dollars a barrel.

[the diddymen] 14/9/2021 16:34

Just under £10k of trades by value today, or less than 0.1% traded.

17 days until crystalisation of the 10% deposit, which will flush Marty's 'no placing' fox, or disclose a fudge, (or take the first steps to insolvency).

[ducky fuzz] 14/9/2021 16:20

Hi damac .. Of course I don't understand what ''bookable asset'' means.

Assuming we have 50,000,000 barrels of oil and on top of that the sand.

Assuming the oil and sand is worth 100 dollars combined does that mean
TOMco are worth 5,000,000,000 i.e. 5 billion dollars which is a shed-load more than our current mark. df

[damac] 14/9/2021 16:04

jaynealex,

There wont be a broker note until after financial closure on the plant funding. Only then does the reserves in the ground become bookable assets.

[goulding1215] 14/9/2021 16:04

Diddlysquat posts more didleysquat rubbish.

[the diddymen] 14/9/2021 15:57

reichsmart start with the local market and then add about 7.5p per mile per Tonne, or £7.50 per Tonne per 100m. Then look at the value again. There will be a market, but the quantities produced by the project will be significant (if it gets financed) and I suspect that when competing as a non-specialist product locally its market will be limited by distance. Fracking may provide an alternative but subject to the same restrictions, albeit nationally.