Tomco Energy Share Discussion Threads

[rmart] 20/2/2022 11:52

If we forget for a minute about the funding term sheet arriving or not (and i think it will in the next week) and just take the drilling aspect and the refinery aspect.

500bopd from the first 5 drills at say $60 per barrel profit based on 25 days per month production and 5 maintenance = $9m profit per yr.

We have no debt but for the cash neeeded to drill 3 further wells as 2 of the test wells will become production wells.

The refinery : 10,000 bopd at $3 royalty on the same basis (25 days per month) is also $9m profit per yr.

That is $18m profit per yr and very little outlay.

Based on these 2 very low risk opportunities we have a multibag from here.

Then add in a further 20 shallow wells at 100bopd each funded from production and we have a further $36m per yr profit.

Total $54m per yr profit.

IMO, just get the above done. Prove the model with the 3 test wels in March. Then getting finance for the ramaining 90% and 3 further wells will be easy.

Run this for 12 months building up to the 25 well target and then start the 5000bopd job.

All this is very quick and without the funding for the 5,000 bopd plant.

In fact if we just go down this route from here we would also save the upcoming 29% for Valkor which is dependent on getting the finance for the 5000bopd plant.

This is is why Valkor will not let the funding fail and they will get the finance.

BIG MONEY is talking here not just us minnows on here.

[the diddymen] 19/2/2022 21:05

Lopo, the drilling for conventional oil will be the only route for TOM. If it is successful (enter stage rights rarely are successful) then why bother with the expensive risky stuff?

[mashman] 19/2/2022 20:31

You guys are whipping up a bit of fomo here and the technicals are looking set to erect. It's a blow or no, an age-old problem for us oldies :-) This time next year Rodney.

[lopodop] 19/2/2022 07:34

DF and DAMAC - well if you are correct, it'll be a walk in the park. Try telling that to JP and ask him what's holding up completion.

[lopodop] 19/2/2022 07:34

DF and DAMAC - well if you are correct, it'll be a walk in the park. Try telling that to JP and ask him what's holding up completion.

[ducky fuzz] 18/2/2022 22:35

Ahhh but what if they've had it but sent it back as some points are not agreeable?

[damac] 18/2/2022 22:15

They have to RNS that they have received it but don't expect the proposed terms to be included in that RNS. Terms will only be announced if & when both parties move forward and sign off the deal.

[lopodop] 18/2/2022 20:37

As is won't to be the case, many investors here spouting drivel - they know who they are.
An offtake agreement may never be reached because the terms will be too onerous and also will jeopardise the equity owned by TOM investors. Investors have to face this head on and it will then be for the Board to come forward with the alternative means of funding.
Why on earth some on here think offtake will fall into their laps is beyond belief. These offtake guys are hard nuts to crack and will probably want more than the TOM group can cede.
No wonder Horsman and Kirchner steered well clear.
Get the drilling under way to reassure investors.

[vauch] 18/2/2022 20:15

But do they need to rns they have received it or only if they have accepted the terms.

[wilson2] 18/2/2022 19:27

Damac prove your statement?

[ajj2003] 18/2/2022 17:17

Thanks damac for the clarification

[damac] 18/2/2022 17:08

I would think they have to RNS they have received a term sheet from a potential funder.

[vauch] 18/2/2022 16:18

Once they have the terms sheet will the co have to RNS the fact or not until terms are agreed.

[rmart] 18/2/2022 16:14

the term sheet has to be next week imo. 2 weeks is up and i am not holding him to a deadline but if it goes beyond 3 some will see it as another missed self imposed target and sell.

If it comes we boom.

[vauch] 18/2/2022 15:21

So which will land first the terms or the drill

[johncraven2] 18/2/2022 13:28

I took 1.5m in all in the lows yesterday.

See how it will pan out for us for the next three weeks. Speculators will be piling in case we hit the jackpot.

[damac] 18/2/2022 13:15

Talais, I don't think they will mention who the potential funder is until the final contract is signed, assuming agreeable heads of terms can be reached between both parties.

Also, pondering on who the funder may be, we shouldn't apply limited thinking like on the other thread where they automatically assume that it would have to be a US funder because the project is in the US.

[rmart] 18/2/2022 13:02

don't want it on a friday afternoon. Next week will do me.

[talais] 18/2/2022 12:57

If Tomco are going to tell us who are binding terms of agreement is with. That may be released US time, just a thought,

[vauch] 18/2/2022 12:53

Not much different to PQE's sand

[talais] 18/2/2022 12:50

I wonder what quality our silica sand will be,https://www.alibaba.com/showroom/silica-sand-price-per-ton.html

[busamitch] 18/2/2022 12:46

U.S. Shale Production Hindered By Sand Supply Crunch

By Tsvetana Paraskova - Feb 16, 2022, 7:00 PM CST

U.S. shale drillers will be eager to boost production as oil prices near $100 per barrel, but a looming frac sand shortage may stop them.

Combined with rising labor costs, a potential trucker shortage, and inflation, a frac sand shortage could become a major headache for shale producers.

U.S. oil production is sure to increase over the year, but if these cost problems aren’t solved then expectations will have to be tempered.

"Although high prices would, in theory, trigger a burst in tight oil production, acute supply chain bottlenecks, a lag between price signals and its impact on production, and winter weather-related disruptions will slow growth. Added to this are expectations that spot sand prices will rise to a $50-$70 per ton range – a level unheard of in the industry's modern history – which will hit operators' wallets," Artem Abramov, Rystad Energy's head of shale research, said earlier this week."