Tomco Energy Share Discussion Threads

[the diddymen] 12/12/2021 11:37

TOM is a very high risk venture and there must be a defence in there somewhere.

Pre-christmas will be crunchy unless JP can get that drilling RNS out. If not you can see the placing price falling through the floor.

As I have said before, I hope that Valkor and TOM are batting on the same side.

[lopodop] 11/12/2021 11:46

TD
The two chartered accountant non execs will get a real caning if TOM fails in due course. Are they overseeing what JP is up to is a concerning question. Should matters remain as unclear in a week's time, the present share price will probably not uphold.
It's anyone's guess where TOM is at this moment in time!

[the diddymen] 11/12/2021 11:10

Lopo

You never want to leave it to the last minute but with the warrants and the 10% deposit JP could have bought time.

The bottom line is that they will never be able to raise the $110+m without commitment. The placing will be the easy bit - it is a question of what value will be left for the existing shareholders given the current share price

[the diddymen] 11/12/2021 11:05

I agree that life is short but.......

I genuinely mean it - good luck, but it does not change my view on where this one is headed.

[vauch] 10/12/2021 20:43

I know and like it as life is to short the be so serious.

[the diddymen] 10/12/2021 20:07

Vauch you are daft.

[ducky fuzz] 10/12/2021 19:47

Top marks Ratty. Great post. DF

[goulding1215] 10/12/2021 19:14

JP Morgan Predicts The End Of Covid, A Strong Economy, And $125 Oil

By Tsvetana Paraskova - Dec 08, 2021, 12:00 PM CST
JP Morgan believes that things are looking up for the global economy next year and consumption will remain strong for years to come
The bank highlights inflation, the Chinese economy, and the transition from a pandemic to an endemic disease as the three economic factors to watch moving forward
This prediction for a vibrant economy supports the banks earlier claim that oil prices could hit $125 per barrel next year

[wilson2] 10/12/2021 17:17

Rmart has probably sold

[the diddymen] 10/12/2021 16:36

One post on the other thread today three yesterday and it has been reichsmartfree for four days.

Anything to do with the lack of an RNS?

[fenners66] 10/12/2021 11:08

The other thread is busy discussing exploration results for wells drilled since the 1960's
We know the previous owners went bust with even greater losses than TOM has.
We know the land has been for sale for 5 years.
We know TOM does not have the capability to drill itself....

So if it's as easy as the gamblers think , why didn't everyone else produce oil from Asphalt ridge over the last 50years instead of rejecting it or going bust doing something else ?

After all - we are led to believe it can now be achieved by a one man band , with no money , no personnel, no drill and a history of failure...

If it is that easy anyone could do it....

[the diddymen] 10/12/2021 10:50

Lopo

I think it unlikely that there would be a requirement for a prior year adjustment. The balance sheet is relatively straight forward. What is looking unsustainable is the carrying value of leases where there is no clear route to commercialisation.

[fenners66] 10/12/2021 10:49

"The firm behind the controversial Cambo oilfield development off Shetland is "pausing" the project, BBC Scotland has learned.

Siccar Point Energy's decision comes a week after Shell pulled out.

Siccar Point Energy said that Shell's announcement meant the project could not progress on the "originally planned timescale".

Environmentalists say new fossil fuel projects like Cambo are incompatible with action on climate change."


Not that TOM has anything to worry about huh?
1, They have not got an oil drill
2, There are probably no climate change activists in the USA
3, The USA cannot be leading the world in a move to say electric vehicles ?With near $trillion dollar valuations given to say an electric car company...
4, Anyone who wants to borrow $150m (as a one man band) will not have any problem raising finance against a backdrop of no longer lending on fossil fuel projects , huh ?

What could possibly go wrong ?

[lopodop] 10/12/2021 10:37

TD
The auditors may also have to revisit other areas in previous year's numbers - Happy auditing!

[rugrat2] 10/12/2021 10:18

Hi damac
Ref: the deepest they will be going is 900ft as…. “they need to assess the bottom of the formation”.
I take it that is something that you have gleaned from somewhere other than in an RNS , the Proactive piece or JP’s interview?

Anyway that quote and re-listening to JP’s interview has reassured me a little that they might be drilling into and through the Asphalt Ridge Sandstone if the drills are all in the confines of tract D. Take a look at the cross-sections in fig 4.19 in the Norwest report :

hxxps://img1.wsimg.com/blobby/go/d465a4f1-05ba-438d-a129-082d6db0c6d1/NW-Resource-Report-Final-Report-Aug-27-2013-1.pdf

Only in the far SW corner of the tract is there a risk of a 900ft drill not passing through the Asphalt Ridge formation which is thinner than the Rim Rock (which is about 220ft thick overall from well data in the LETC area). JP referred to the three as exploration wells (despite the comprehensive data already available) so I would be amazed if they weren’t looking deeper than the Rim Rock whilst they were drilling.

The section (T4S R20E 22) immediately west of sections 23 and 24 which tract D straddles has also been the subject of extensive drilling and core sampling over the years. This section is in SITLA lease ML53831 in which Valkor expect to have the mineral rights below 300 ft from the surface assuming the Petroteq deal goes ahead. From the map you can see that Shell have drilled eight wells in it (1960’s?), but other than basic details like position, depth and bottom hole formation there is little of use on the UDOGM website . Then in 1974 Tom Brown Inc drilled six holes often quoted in texts. I have eventually found a link at:

hxxps://collections.lib.utah.edu/details?id=214070&page=2&facet_setname_s=%22ir_eua%22&q=Flood+plain

Unfortunately the maps are all missing from the document and the wells do not appear on the UDOGM website but from a clue or two and references to it in other papers the lease of 1120 acres was section 22 (640 ac) and probably section 23 less the 160 acres comprising the western end of Greenfields tract D. On GoogleEarth there is clear evidence in sections 22 and 23 of more drill sites, other than the Shell drills, but no way of identifying the Tom Brown sites. The Tom Brown report gives comprehensive data on the cores taken from four of the wells and estimates of oil in place for the Duquesne, Rim Rock and Asphalt Ridge formations. I will be very surprised if the figures in there don’t make JP drill into the AR.

[the diddymen] 10/12/2021 08:20

Lopo

The auditors will struggle with the carrying value of the key assets on the BS. Fenners has gone through those details.

That will be part of the backdrop to the going concern review. Not easy.

Whereas TOM can delay the RNS on the drilling they will have to meet listing requirements on their audit. Miss that deadline and it will be free fall.

[lopodop] 10/12/2021 07:56

TD
Given there are 2 financial experts on the board, it is surprising if not disappointing that the financial position is not transparent. Headless chickens is a phrase that comes to mind. Had the share price lifted to 1p plus a placing would have been over and done with by now. Is TOM technically solvent at this time? The auditors will have their work cut out to assess the position given the large financial commitments.
SB will be curious about TOM's future but unconcerned as he may the white knight.

[fenners66] 10/12/2021 07:44

Not withstanding the $110m was the middle of a +/-25% range
(Which is irrational since that is a massive variation)
But after 2 years or more of inflation in the USA since that number was thought of by the time they were to get around to spending on it , it should be nearer $150m

[the diddymen] 10/12/2021 07:05

Lopo this stuff is the easy stuff. Valiant as JP's efforts have been he is going to need to be very alternative/lateral to get this funded. I think that our instincts about cash are not far off the mark.

We were correct in maintaining that TOM did not have the cash to acquire the 10% deposit and maintain working capital.

Likewise now it is very clear that they will not have sufficient cash to pay for the staffing/technical/professional costs of raising the $110+m.

That could be resolved with a placing, but in reality the placing will stuff the existing shareholders unless the share price rises significantly.

Therein lies the problem, the share price is rock bottom because the risk of not raising the $110+m is so high.

JP will have to sweat to get this one to stick.

[lopodop] 09/12/2021 21:34

TD
PANIC or give up. Could it be that SB iS biding time knowing that TOM's financial state is questionable and the financial funding plan is unclear! He must surely have safeguards within his arrangements with TOM. May be he is entitled to equity (further) in TOM which could create an interesting conundrum for the market?

[the diddymen] 09/12/2021 18:47

'nother day. No RNS.

At what point do shareholders panic?

[damac] 09/12/2021 16:41

Rugratz,

I agree on the unsure where the permit would appear bit (if at all) but it is fact that Greenfield are still waiting on it. The ball is firmly in DOGM’s court on this.

With regards to the extent of drilling, the deepest they will be going is 900ft as…. “they need to assess the bottom of the formation”. 😉

[lopodop] 09/12/2021 16:22

Oh dear Shaunx, what agenda? Who on earth sees TOM as a competitor I ask? What threat - three part timers and a catering expert. If you are as naive as you sound, well ...

[shaunx] 09/12/2021 15:28

You're here everyday with an agenda as are others, if you weren't I would probably be more questioning of my investment. The fact you guys see Tomco as some form of threat or competition to other companies is good with me.