TomCo's 100% owned subsidiary working to establish near term oil production in Utah
In August 2021 TomCo took full control of Greenfield following the completion of testing at Petroteq’s oil sands plant, the receipt of a finalised FEED study and ahead of the planned acquisition of the Tar Sands Holdings II site in Utah, USA.
On 26 August 2021 TomCo announced an agreement reached with Valkor LLC (“Valkor”) to acquire Valkor’s 50% of Greenfield and TomCo now owns 100% of Greenfield, with full control, thereby affording TomCo’s shareholders the opportunity to fully benefit from Greenfield’s significant potential, whilst retaining Valkor as a valued stakeholder and planned substantial shareholder in the Company.
This followed the successful completion of all of the planned trial work utilising Petroteq Energy Inc.’s existing oil sands plant at Asphalt Ridge, Utah (the “POSP”), as announced on 2 July 2021, the commencement of requisite due diligence on Tar Sands Holdings II LLC (“TSHII”) and its site as announced on 9 June 2021 and the receipt of the finalised FEED (Front-End Engineering and Design) study for production facilities, together with the associated third-party technical verification report on the proposed process, as announced on 27 July 2021.
TSHII owns approximately 760 acres of land and certain non-producing assets (the “Site”) in Uintah County, Utah, USA. Subject to securing the requisite funding and satisfactory due diligence, Greenfield plans to use the Site, if ultimately acquired via TSHII, for the future mining of oil sands and construction of a commercial scale processing plant utilising the findings of the FEED study, and other knowledge and experience gained from Greenfield’s operation of the POSP. The Site has existing infrastructure, plant and equipment, together with an existing Large Mine Permit No. M0470032, that could facilitate any future development by Greenfield.
The FEED study covers the production facilities for a 5,000 barrels of oil per day (“bopd”) oil sands project (the “Greenfield Plant”). The Greenfield Plant is currently intended to be located at the Site. The proposed plant is planned to consist of an initial 5,000 bopd train but configured for possible expansion to 10,000 bopd via a second future train.
The FEED study will be utilised as the basis for the EPC phase of the project and TomCo’s directors continue to believe that the completed FEED study, together with the supporting third-party technical verification report and recently completed testing operations at the POSP, serve to provide a high level of confidence in both the potential economics and the technical feasibility of Greenfield’s plans.
To assist Greenfield in progressing its plans for the Site and the securing of further funding to develop and acquire the membership interests in TSHII, the Company has engaged specialist oil and gas industry advisers experienced in the structuring and securing of such financings. They are currently exploring a number of potential funding options.
Additionally, Greenfield has commenced detailed engineering and design work in connection with its future plans for the Site including engaging Stantec Inc, a global design and delivery firm with extensive experience in the oil and gas and mining sectors, on mine planning for the Site, and working with Netherland Sewell & Associates, global petroleum consultants, on a Site reserves report, together with other preparatory work. This is in addition to the continuing detailed engineering design and planning work being undertaken by Valkor.