TomCo Energy shares resume trading as board seeks funding
Oil shale exploration, development and technology group TomCo Energy announced the appointment of Turner Pope Investments as its broker with immediate effect on Monday.
The AIM-traded firm also said that, further to its announcement on 16 November, trading in its ordinary shares on AIM wa resuming with effect from 0730 GMT on Monday.
It explained that, notwithstanding the board's previously-stated position regarding the November placing agreement entered into with its former broker, it had reconciled to accept its termination in the longer-term interests of shareholders.
As a result, the placing announced on 5 November would not proceed, and the company was withdrawing the application for the placing shares to be admitted to trading on AIM.
The decision was arrived at after discussions with the company's advisers and its new broker, the board said.
“As announced on 16 November, the company confirms that it currently has cash resources of approximately £0.25m, which the board believes is sufficient to fund the company through to late in the first quarter of 2019,” the TomCo board said in its statement.
“This is in line with previous guidance announced on 30 October prior to the announcement of the terminated placing, and as set out in that announcement, the company will need to raise further funds for working capital and loan repayments beyond the first quarter of 2019.”
TomCo said it was continuing to review and analyse the data collected from the recent field test activities, to determine the optimal step going forward with regard to the applicability of TurboShale’s RF technology, to the recovery of oil from the oil shale at the Holliday Block and the funding requirements there, which were in addition to its working capital requirements/
The company has at least an 80% interest in TurboShale.
Its board said it appreciated that recent developments would have been “of concern” to shareholders, adding it would provide further updates in due course.