TomCo Energy - Crosby's Next Multibagger!

Seem to remember that M and C on the other thread was going on about massive dilution to follow to fund acquistions etc.....well this should put that one to bed......

"3. The Company’s investment strategy following Completion

The Company’s strategy relating to the TomCo Leases is set out in paragraph 5.6 below. On completion of the Acquisition the Board intends to apply the net proceeds of the Placing to acquire and, where appropriate, develop conventional oil assets in the US, concentrating principally on shallow oil wells, primarily by leveraging the expertise and extensive industry contacts of Howard Crosby and John Ryan.

The Board intends to focus initially on oil assets, rather than gas, for cashflow purposes. The criteria that the Board intends to apply to any potential investment is broadly described as follows:

- The Group will participate principally as a non-operating, minority investor in prospects operated by industry partners known to the Board;

- The Group will focus initially on shallow oil prospects, being prospects above 5,000 feet, in the continental USA, with primary focus on established oil producing provinces in Texas, Oklahoma, Louisiana, New Mexico and Wyoming;

- Where the Group invests in non-producing wells, the Board intends to invest in areas with proven wells nearby, adjacent to existing productive wells, or with other geologic or seismic indications that the risks of the prospect are relatively low;

- The Group’s target investment price for producing oil assets is approximately US$12 to US$15 per barrel, and funding costs for non-producing assets are intended to be approximately US$5 to US$7 per barrel;

- The Group will invest primarily where the operator of the well, the subject of the investment, has invested in the project; and

- Individual investments in proven undeveloped wells are unlikely to exceed $100,000, thus diluting the Group’s risk profile.

By way of this investment strategy the Board intends, over time, to establish a portfolio of principally producing oil properties. These properties may be either fully engineered, proven and developed producing wells or proven undeveloped locations, although initially the Board expect to focus on producing and fully engineered wells. Accordingly, the Directors and the Proposed Director are confident that commercial debt facilities will be available to the Group for the purpose of financing suitable acquisitions.

In addition to this strategy, the Directors may, where appropriate, make investments in, or acquisitions of, businesses involved in oil production in the United States."


How many small companies can say that? I assume that's quite unusual for a company of this size?

I think that Crosby and Ryan will be making us a truck load of money over the next few years....