Oil shale company TomCo Energy Plc (LON: TOM) posted a loss for the first half as it developed its Utah prospect.
The results were posted as the Company are soon to conduct a field test at its Utah venture, and the latest round of pre-tax losses amounted to £524,000, up from £209,000.
The Company said that it could expect a field test at its Holliday A block to commence in early August and conclude around four weeks later.
TomCo Energy Comments
Company CEO John Potter, responded to the update:
“The main objective of the Field Test is to recover oil using TurboShale’s RF technology by heating kerogen in-situ. With the extensive survey work undertaken in the period and the expansion of the project team our confidence in meeting our objective is very high.”
Noting the precariousness of its current position, TomCo said the following in the ‘Going concern’ segment of its statement:
“The Directors are confident that they can secure the requisite funding in the short term and looking further ahead, assuming a positive outcome from the Field Test, the Directors believe that the Group will be able to target various alternative sources of longer-term funding and will actively explore and consider all potential funding options. However, there can be no certainty that the Group will be able to secure the necessary funding as and when required or that if such funds are available as to the terms of such funding.”
“As a result, these conditions are considered to represent a material uncertainty, which may cast significant doubt over the Group’s ability to continue as a going concern and in the event that it is unable to secure the requisite funding, it is likely that the Company will not be able to meet its liabilities as they fall due and that it may therefore be forced into insolvency proceedings (be that administration or liquidation) and in such a case it is highly unlikely that there would be any value attributable to shareholders.”
“Whilst acknowledging this material uncertainty, the Directors remain confident of raising the additional funds required and therefore the Directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include the adjustments that would result if the Group and Company was unable to continue as a going concern.”
Following the release of the results, TomCo shares dipped during Friday trading, down 1.43% or 0.04p to 2.76p a share 28/06/19 11:40 GMT.