TomCo Energy shares (LON:TOM) fell more than 20% on Tuesday, after the company announced a field test programme in 2019.
The shale exploration and development group said that it had commenced work to start its field test programme at the company’s Holliday Block in Utah, of which it owns a 80% interest.
Should the test prove successful, the Board expects that initial production will be between 5 to 10 barrels of oil, the statement added.
The company also announced the securing of a patent by its subsidiary, TurboShale, for its RF technology.
The patent request was initially filed back in 2015. The company said that the patent was assigned to TurboShale in 2017 as part of an agreement with JRT.
The statement said that ‘Further development of the process explained in the patent will be carried out as the Company expands its field operations.’
John Potter, Chief Executive of TomCo Energy, commented on the announcement:
“We have two key strands of work ongoing at present with our primary objective being to test the application of TurboShale’s RF technology on our Holliday Block to achieve first oil. TomCo will, subject to a successful test, then seek to scale operations into the pre-production phase. The enhanced technical team has done excellent work on seeking to identifying a suitable site for the test and we look forward to providing further updates in this regard.
I am also excited about the second string of our work currently on going, as we seek to develop the next phase of RF technology to deal with direct water contact. The Board believes this should be solved with adaption of current technologies and processes and is part of TomCo’s strategy to build value from having the technology and experience to deliver strategic, commercial oil production within the US.”
TomCo Energy operates under the subsidiaries of The Oil Mining Company, which it owns 100% of, as well as TurboShale Inc, of which it holds 80%.
The company’s operations are focused in Utah in the U.S.
Shares in the firm are currently -22.22% as of 12:42PM (GMT).
