Tomco Energy Share Discussion Threads

[vauch] 30/3/2022 08:22

Alongside the acquisition of the initial 10% of the Membership Interests, a newly incorporated subsidiary of Greenfield has been granted a lease over approximately 320 acres of the 760 acre site owned by TSHII (the "Lease Area"), for a nominal consideration and annual rental of US$320, together with a 12% of net sales royalty per barrel of conventional oil, gas or sulphur produced and removed from the Lease Area.

The lease provides Greenfield's subsidiary with the exclusive right to explore, drill, and mine for, and extract, store, and remove oil, gas, hydrocarbons, and other associated substances on and from the Lease Area, together, inter alia, with the right to erect, construct and use such plant and equipment and infrastructure as required. The lease is for an initial term of 10 years and will continue thereafter for so long as any oil, gas or other hydrocarbons are being produced from the Lease Area or drilling operations are being prosecuted or as the parties may agree.

So not 90% but 12%

[vauch] 30/3/2022 08:18

Gold, we are all guessing at this stage of the game.
I just hope they don't get into another deal with something else and finely finish at least one project.

[ajj2003] 30/3/2022 08:08

Vested interest in buying more Tomco shares at a cheaper price from the potential Petroteq buyout no doubt.

[goulding1215] 30/3/2022 08:04

Rmart talks sense. Vauch you are just guessing.

[rmart] 30/3/2022 07:59

it cannot come from a placing vauch. they need £15m ish to secure the 90% and drill the production wells.

They cant just raise for the drills as they will be drilling to give 90% away.

[vauch] 30/3/2022 07:52

At lease PQE gad a little pick up on the news

[the diddymen] 30/3/2022 07:21

Oh well one more day to go. You can safely assume that the hold up is the going concern criteria for the auditors if they do not sign off tomorrow. Thereafter it is 3 months to pull a binding package together.

If they do find a lender they will have to cross fingers and hope that the proverbial bus does not run over JP, or, his life is assured for $175m.

[vauch] 30/3/2022 07:10

Unless we do a deal with another co to fund the wells for 50% of the production

[vauch] 30/3/2022 07:09

Rmart most likely another another share issue.

[thrgef] 29/3/2022 23:56

The deep drills are a bonus activity but are independent to the main funding event. The £145m funding is from the standalone project based on the success of the POSP, shallow resource and off-take agreements. Of couree we will be a stronger company if the three other revenues come in, including potential revenues from the deep drills. If we are successful with the main fund package, financing future production wells is not going to be a problem

[rmart] 29/3/2022 22:40

thrgef, where is the cash to drill the production wells coming from? Why would they drill those wells to give 90% of the income to tshII?

[thrgef] 29/3/2022 20:06

The deep drills are of no consequence to the £145m funding package.

[fenners66] 29/3/2022 18:53

Ducky fuzz - while I admire your attempts at bringing caution and reason to the La La thread I have to say again
look at the Tomco presentation a couple of months ago.

Their own (likely overoptimistic) cash flow projection showed they would need $175m

We were saying upwards of $145m whilst the La La's were saying $110m

You have moved them up from there - but are still at least $30m short.

Why does that matter?
Because the extended credit required by this £9m loss making market cap company becomes more and more far fetched as it rises.
USA inflation may well reach 9 or 10% very soon.
All the cash flow projections were done long before that.

Interest rates are rising.
Risk taking is declining

What are their real chances now ?

[ducky fuzz] 29/3/2022 17:16

Of course there is uncertainty and that is why the share price is where it is.

[ducky fuzz] 29/3/2022 17:11

With any funding you have to show how you will pay the interest / loan. Clearly if TOMco do get the CO2 wells up and running in Q2 they will have an income. If not then funding will not arrive till at least 2023. Not counting the 3rd party deals we have done which maybe can't be relied on at this early stage.

[ajj2003] 29/3/2022 17:06

Hi vauch, the company has already said previously that the c$145 million funding will be comprised of a number of different methods and mechanisms.

Given that the three preliminary wells were drilled in March and the final funding is due to be completed in April, it is 'more than likely' that DF is correct in his assumption that the drill results will form the basis for one of the different methods of funding to be used in completing the c$145 million.

[ducky fuzz] 29/3/2022 16:59

Like you I have no idea why there has been a delay in funding.

I seem to remember that TOMco was originally looking to borrow c$110 Mill but this got increased to $145 Mill when the CO2 production opportunity came up.

TOMco do not have the $16 Mill to buy the 90% balance of TS2 and do not have the required funds for the Co2 production wells.

Logically they might be waiting to see if they are going to drill the CO2 production wells before committing to the $145 Mill.

Equally there could be other reasons for the funding delay like another funder being looked at or just trying to get a better offer.

What of the above do you not agree with?

[vauch] 29/3/2022 16:49

So Ducky You are saying the delay in funding note is due to Tom now wanting funding for deep well production. that has not been mentioned by the company.

[danmart2] 29/3/2022 16:40

I am not currently invested in TOmco but do hope for all concerned this is finally the moment TOmco deliver

[ducky fuzz] 29/3/2022 15:32

You are wrong vauch .. TOMco needs the funding to buy the remailing 90% of TS2
and drill the exploration wells.

[vauch] 29/3/2022 15:27

The funding of proses plant has nothing to do with the wells, they are separate.

[ducky fuzz] 29/3/2022 14:42

Hi rmart .. I think it is very likely that TOMco are waiting for the results of the exploration drilling before signing off the funding.

Surely if the drilling results show there is no CO2 commercial oil then our funding requirement will be a lot lower.

Equally the funders might want confirmation that the CO2 wells are commercial. DF

[busamitch] 29/3/2022 14:08

Petroteq Announces That Its Founder, Former Chairman and CEO, Mr. Alex Blyumkin Supports the Takeover Bid and Has Tendered Shares To Takeover-Bid From Viston Swiss United AG

[rmart] 29/3/2022 13:25

Into week 9 of 2, still no finance news. Under 3 weeks to Easter.

Come on Tommy, update us on the term sheet/funding, is it still on for completion by Easter?

[the diddymen] 29/3/2022 07:04

Proverbial hat safe for another day. Only two days and TOM are relying on Covid dispensations.