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TomCo share price boosted on update from Utah oil plant

TomCo share price

The TomCo share price (LON:TOM) is up by 2.86% on Tuesday as the oil exploration company made an announcement regarding its proposed project in Utah. It is welcome news for the TomCo share price following a challenging month, as oil prices fell on OPEC+ negotiating its policy towards the commodity.

However, the TomCo share price is up since the beginning of the year by 8%. Over a four week period, between May and June, the TomCo share price nearly doubled on the back of the company receiving a draft FEED study and positive investor sentiment, while it confirmed it reached important production and sales markers. Today’s news represents another milestone for the AIM-listed company which could bode well for the TomCo share price moving forward.

TomCo partner completes trial work a Utah plant

TomCo confirmed that its joint venture with Greenfield Energy had successfully completed all planned trial work at asphalt Ridge in Utah. The oil company said that all the necessary data had been acquired for the front-end engineering and design (FEED).

A technical review of the existing operation at the Petroteq Energy pilot plant brought about estimated for operating costs in the region of $22 per barrel, based on 5,000 barrels of oil per day.

“The FEED study outlines better economics for the proposed plant than we initially envisaged, together with verification that the proposed technical approach is appropriate,” said chief executive of TomCo Energy John Potter.

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“Greenfield’s focus remains firmly on completing the requisite due diligence on TSH II and its site in Utah and progressing the necessary funding package in order to, inter alia, pursue construction of an initial 5,000 bopd facility at the earliest opportunity.”

“These are very exciting times for TomCo as we look to realise Greenfield’s significant potential,” Potter added. The chief executive will be hoping the news is reflected in the Tomco share price in the months to come.

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