TomCo Share Price Soars

Share On Facebook
share on Linkedin
Print

TomCo Energy (LSE:TOM) is a top moving stock today, up more than 25% as investor confidence soars in shale oil processing.

The company owns leases covering around 3,000 acres of some of the best shale oil lands in Utah, estimated to hold as much as 230 million barrels of oil. This deposit is part of the greater Green River Formation, which is a region with oil holdings estimated up to 1.8 trillion barrels, 800 billion of which are said to be recoverable.  TomCo bought a license in March 2010 to use technology developed by Red Leaf Resources called EcoShale to extract the oil most efficiently.

EcoShale Process

The EcoShale process involves heating the mined shale in an enclosed capsule, extracting two different types of shale oil products. This process is a much cleaner and more efficient way of extracting oil from shale and has allowed for an increase in shale extraction in the Green River region. The process requires no water, uses lower temperatures for operation, and allows for quick site reclamation after the shale has been extracted.

Strategic Advantages of Shale

The estimated potential reserves in the Green River Formation hold more than triple the proven reserves in Saudi Arabia. The political climate with reference to fossil fuels in America is also conducive to the expansion of shale oil extraction, as pressure is increasing to reduce dependence on foreign oil.  These market conditions, in combination with TomCo‘s strategic holdings in Utah and their license to use EcoShale processing technology, have made this stock a popular buy. London Mining founder Christopher Brown’s company Kenglo made an investment and now owns 29.9% of the company. TomCo was also recently valued at 10p per share by Optiva Securities, who calculated a pre-tax net present value of $687 million at a 10% discount rate for TomCo’s Holliday oil shale project.

ADVFN Users Weigh In

The popular opinion is that TomCo has nowhere to go but up, with many ADVFN users taking to the blogs about their expectations. One user, rmart wrote today, “you search for years on AIM for an opportunity like this,” while devil20 claimed, “this chart is looking more n more like a stairway to heaven.” It would seem that the US shale industry is poised for a take-off, and TomCo is along for the ride, quickly becoming a long-term hold for many traders.

References
 TomCo Energy Oil Shale Assets
 About TomCo
 EcoShale In-Capsule Technology
 TomCo Energyy Oil Shale Assets
 Optiva Securities
 TomCo Energy – At the Vanguard of a US Oil Shale Industry?

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220816 07:40:25