Tomco Energy Share Discussion Threads

[ducky fuzz] 19/11/2021 07:50

Yes it makes the maths so much easier.

149.5 barrels a day would be way more difficult.

[stuart little] 19/11/2021 07:45

That said 100 barrels a day x 25 wells will do me just fine...

[stuart little] 19/11/2021 07:43

Foxm, Until they drill the exploration wells, in a couple of weeks, to gather more info it's only right to err on the side of caution. I too believe 100 is understating the play.

[ducky fuzz] 19/11/2021 07:42

Hi Foxy .. Interesting post thanks. I would imagine Valkor know what they are doing.
Maybe it is a cost or time issue. Also depends on how much recoverable oil there is and whether this method gets out all the oil.

[foxm] 19/11/2021 07:39

I'm wondering if JP is being slightly conservative about the expected production figures, 100 barrels/day per well is very low compared to in-situ production in Canada. They average about 500 barrels/day per well in Alberta.



I can only presume they're going to drill vertical wells, which would be strange as it's the older, much less efficient method of drilling. A link I posted here a while ago -



Maybe the site is only suitable for vertical wells, but they are very uncommon now, only 8% of wells in Canada and 21% in the US are still vertical, the rest are horizontal. If they could drill 25 horizontal wells, they could easily be looking at over 10,000 barrels/day production.

[goulding1215] 19/11/2021 07:09

Well said J

[ducky fuzz] 19/11/2021 07:08

Hi j .. I'm just saying the doubts are why we are still under 1p.

[jaynealex] 19/11/2021 07:00

Well 25 deep wells producing 100 brls /day , 2500 in total a day .. say 300 days a year = 750,000 brls a year

That's alot of cash flow , and profit with a high oil price , even with loan repayments ref the 25 wells

Potential lenders for the 5000 brl plants will be encouraged

[ducky fuzz] 19/11/2021 06:51

Hi g .. I'll go with no but I appreciated the effort.

Hi j .. The big question is finance. John Potter seems very confident in the podcast
that this isn't an issue.

[jaynealex] 19/11/2021 06:46

After listening to that video , my immediate reaction was that this " project " is de-risking rapidly !!

In a theoretical world the expected cash flows and therefore NPV are increasing all the time as risk diminishes ( and as extra revenue streams are added ...drilling 25 wells + 2 x 5k brls plants , looking for more sites )

History is like an anchor here , holding the share down

We should be alot higher already !

Sometime soon that anchor rope is going to break and Tom will zoom upwards to it's real value

Come on Tommy !

[goulding1215] 19/11/2021 06:31

Is that all clear now ducky?

[ducky fuzz] 19/11/2021 06:26

Thanks for the explanation guys.

I wonder if the excitement will continue today?

I think damac said he'd post a timeline when he gets time. I'd certainly appreciate that. DF

[jaynealex] 19/11/2021 04:05

Back in the early 80s small builders received finance from tertiary banks in a similar manner ...an upfront loan to purchase and develop the site paid back as a fixed sum per house sale , and calculated so the bank had its money and profit out at say 60% of sales

[jaynealex] 19/11/2021 03:57

It's like I mentioned before , it will probably be a % of each brl.produced / sold or a fixed amount per brl and as Damac says will be for a fixed amount or time period


It's very similar to the pub industry where to redevelop pubs tenants or free traders receive loans from the brewery repaid per brl delivered ( the repayment is in the price per brl )

Could be a refinery helps with the finance deducting "x" from every brl received and paid for , for a specific time period , or to a specific £amount

The loan guarantees business for the refinery or brewery as the oil producer or pub is tied to that entity

[damac] 18/11/2021 23:50

Here is a visual that may help you understand it if you are struggling with it...

[damac] 18/11/2021 23:45

Ducky,

For you ....


What are quasi-equity investments?

Quasi-equity is a hybrid form of finance with characteristics of both debt and equity investments. Quasi-equity offers non-dilutive equity risk capital that is paid back based on the performance of the company. Non-dilutive means that the current owners do not lose any part of their ownership in the company.

Quasi-equity is also known as venture debt. Quasi-equity is especially applicable to (innovative) SMEs and mid-caps seeking to invest in R&D. Due to the equity component, the firm is given a more generous schedule for repayment of the loan than would be the case with a traditional loan.

[stuart little] 18/11/2021 21:50

It's simply ridiculous to be critical of a company that unearthed a second opportunity while furthering their main scheme. To attempt to put them down on the back of this is pure desperation. The clutching straw is being passed around on here! Pass it to loopy so we can have a good laugh at him too!

[fishyneck] 18/11/2021 21:40

Just one answer then. They aren't just sticking with the drill as the site has multiple layers. They can now exploit all these layers through the drill bit and the mining process. That answer ok?

[the diddymen] 18/11/2021 21:33

Given that a few months back the rampfest had not heard of the oil potential (nor had anyone), and were claiming that the company had sufficient cash to cover on going costs plus the 10% deposit, some of the comments on the thread today are pretty rich.

The bottom line is that TOMCO have had to borrow, and, at the moment it is assumed that the short term loan will be paid off by the proceeds of the drill.

I am not aware of how TOMCO are going to drill, farm out or finance the set up costs. If it has been disclosed by the company it has been lost in the fog of garbage.

Anyone who has invested in oil companies knows how fickle it is and you win some lose some. There are many major assumptions floating around at the moment about key cash generation. You could ask Goulding about his experience in PET another explorer; ask how many litres of oil they have produced in the last 30 years or so.

TOMCO shareholders invested in an alternative 'clean' hydrocarbon scheme. Unless I am missing something TOMCO are now drilling for standard polluting crude oil. It might seem a nice easy to deliver solution, but with no detail of the process of delivery it means nothing. There are many many questions that need to be answered on this one.

Just one question - if it is all so easy why don't TOMCO just stick to the drill?

[fishyneck] 18/11/2021 20:07

Great work Ducky!

[wilson2] 18/11/2021 19:48

Unloved in your 70s rmart, keep up the good word

[ducky fuzz] 18/11/2021 19:36

Thanks and it took me ages and I don't understand "Using quasi equity as a debt facility for the construction period".